US market rebounded Monday, recovering almost all of last Friday's lost as expected of a Friday sell off that has no obvious economic data or news trigger. Almost every single time a Friday sell off happens, it leads to a strong Monday almost like a mantra. So there were no surprise there when once again market rebounded strongly yesterday, supported by a drop in bond yields across the board suggesting a reallocation from bonds back into stocks and a sharp drop in total equities put call ratio in a bullish call options vote. This rebound is also extremely important in that it happened right off the daily 30MA line. Such a rebound establishes the 30MA as short term support and gives the SP-500 strength to fulfill the topside breakout that I spoke of last week. In fact, pre-market futures are already pointing upwards and my
Master's Stock Options Picks subscribers were already prepositioned for such a breakout, are you?
For now, the market remains in short term neutral trend within an intermediate and primary bull trend.
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