Turnaround Tuesday

The market is now maximum oversold based on the 30-day A/D line. Both last Friday and Monday were rally days, with Monday being the more powerful one. I refused to hold my long RUT position going into Tuesday because I feared that the market would do a "turnaround Tuesday". This is part of the basing pattern I saw in April 2005 when the market would be up one day and then down another. Also, maximum oversold does not mean we go up in a straight line. It is the business of the market to continually shake the weak hands out. Indeed, now as of 11.32, the market is correcting.