Today’s decline and rally happened on relatively big volume, signaling a continued move to the upside. The candlestick formation that was formed, called a hammer indicates that first the bears were able to push prices lower, but later in the day the bulls overpowered and brought prices back up near the open, this is a bullish sign.
We’ve also had plenty of stocks making new 52-wk highs over the past week and only a few making 52-wk lows. We know we are wrong if prices break below the tail of today’s hammer hence a stop should be placed just below there on any long trades tomorrow.