Bulls Return

Exactly on the dot and like a tame little puppy, the US market rallied yesterday exactly how I said it would yesterday morning in my report for paid subscribers. No surprises there at all (even though I can imagine the surprise of almost all the analysts in the world who disagreed with me yesterday).

 

Here was what I said yesterday:

"As such, even though I expected this week to be a dangerous negative week, I would think that we could see this turn around within these 2 days"

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More than just a positive close day, it was a truly bullish day with bond yields rising in response to to investors returning to equities and total equities trading in favor of call options. The S&P500 is also back down near to its 10SMA which is traditionally its strong short term bullish support especially when interpreted within the framework of a primary bull trend. All in all, I can't see any reason the market won't continue upwards from here and possibly test the 2750 level this week.

For now, the market returns to a short term bull trend within the framework of an intermediate neutral trend within a primary bull trend.