I think there’s a great deal of hesitation to proclaim that the latest market reversal is a technical bell ringer that might usher in a sustainable rebound. 

Fear could be replaced by capitulation; that based on what we’ve seen the past two Fridays. 

Yesterday’s market hesitated at the opening, but then it was off to the races and the major market indices held onto their lion’s share of gains. 

The market is oversold and I think we could be in for a relief rally that tests some near-term resistance for the major market indices. 

The CBOE Volatility Index — dubbed the “fear index” — finished yesterday around 33.50, still well below my target range between 36 and 42. 

From technical scorched earth to seeds of hope, this has been the market’s MO this year. 

Last Friday’s market action was a technically scorched-earth setting for stocks. What was most unsettling was perhaps that there was no one pinpoint factor or item to account for that decline. 

Stock futures indicate that the NASDAQ could recover most of yesterday's losses.