The Nasdaq had a big gap from where it broke the 200dma. That gap will probably be filled here, which would bring us right up to the 200dma, where the test will come. We are now on fllow through day watch, but I'm not sure exactly when the rally attempt will be considered started, so I will check with IBD when I get then chance.
Crude oil is range bound and the moving averages are all about in the same place, so I suspect this will whipsaw between 72 and 80 for the near future. Getting above 80 seems to be a catalyst that draws equities back in, resulting in a subsequent drop here which draws equities back up, a vicious cycle which can continue for quite a while.
Volume was fairly low, and there wasn't a whole lot of new highs. It is way premature to call the correction over, but it is also premature to start jumping into short positions. In the next few days we will probably get an idea as we test moving averages.
I will have the new highs update slightly early tonight.