Market Attempts to End Correction

On Tuesday, the market flexed its volatility muscles as the bulls won an intraday arm wrestling match with the bears. In the morning session, the Nasdaq had declined almost -2% (-108 points) when the bulls took over. By the time the market closed, the Nasdaq was in positive territory. 

The Nasdaq rose +11 points (+0.29%) and the S&P gained +12 points (+0.68 %). The Dow  joined in the rally for +89 points (+0.55%). Volume was above average for all major market indices, making this a broad-based advance with strong institutional participation. Advancers held a 9-to-6 advantage over decliners, and up volume beat down volume by a 9-to-5 margin. 

The Nasdaq's low of the day came within 4 points its 200 SMA, so today's action is considered a bounce off of moving average support. The Nasdaq also tested below the 4 February swing low and closed above it. These two actions mean the market's attempt at a correction reversal has begun.