This was a big one, over 300 points on the Dow today as everything (and I mean everything) went up. That said, we are still Home on the Range, traders will be watching that 1220 line for the S&P’s should we approach. It all began when strategists dialed up their growth forecasts early this morning, the lack of sellers combined with seasonal animal spirits did the rest.
This action is not at all inconsistent with a Bear Market Rally, they tend to be furious and all-encompassing – they can also go on for days even if they simply take you back up to where the sellers are lying in wait (resistance) after a lot of sound and fury. Should we break through (or look as though we’re going to), you can expect mucho chasing as many participants are carrying a lot of cash and reservations about the activity in Europe in China.
The stats below:
Have a good night.