The Russell 2000 small cap index has been the leading index during this latest short-covering rally...at the lows it was down -27% and now it's down "only" -17%, still the most of any U.S. index...
R2K with Rate of change (red):
As we see below, back in late 2008 this index had two rallies on the right shoulder as well, the difference of course is that back then the neckline held. Consumer staples (black line) peaked on that second rally, just as they are peaking now. All of which means that the market is weaker now than it was back then.
MW: Feb. 29, 2016
"Bears Have Their Backs Against The Wall"
"The Russell 2000 Has A Textbook Bottoming Pattern In Place"
Because there's nothing quite as bullish as collapsing profits and recession stocks leading the market...
Third wave Visualized:
Consumer staples (recession stocks):