Market Bottom

(This article is extracted from MarketWatch' Mark Hulbert)

Investors who were shocked by the market's dramatic fall on Monday received some equally dramatic reassurance when the market made back much of this loss on Tuesday.

In fact, Mark Hulbert says that Tuesday was the first "90% up day" since the mid-July low. According to Hulbert, a "90% up day" occurs when the volume of shares rising in price on the NYSE comprises more than 90% of the volume of both rising and declining shares.

Market technicians believe such days can indicate a market bottom. But a bottom typically isn't signaled until a second "90% up day" occurs within a short period following the first one.

So investors awaiting a significant bottom could benefit by keeping a watchful eye on the market's trading volume in the days to come.

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