Yesterday Was One of the Best Days EVER

The gains made on Thursday in U.S. equities was of a historic level.

The NASDAQ surged 7.35% yesterday, its best day since 2020 and one of its best days ever. It actually tied for 14th place all-time in terms of percentage gains. Its 760.97 point gain was the highest EVER. Now before you go placing buy orders, thinking this is the resumption of the secular bull market, keep something in mind. Of the top 13 biggest percentage gains in NASDAQ history, 12 of them occurred during established bear markets. I'm not trying to downplay the significance of yesterday's rally, because it was BIG technically. Rather, I'm just looking to remain objective. Here's what the QQQ now looks like:

Enter QQQ:

To begin confirming that a bottom is in, the QQQ needs a few things. First, I want to see a breakout above price resistance in the 284-285 area. Second, I want to make sure that short-term episodes of selling hold support at the now-rising 20-day EMA. Finally, one key industry group - semiconductors ($DJUSSC) - has not really supported the market in 2022 the way it needs to in order to find a market bottom. Right now, the DJUSSC is flying vs. the S&P 500. Watch to see if this relative uptrend continues. If it does, I'll feel really positive that we're heading higher from here.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.