A Swell Bounce


That’s a 10 minute chart of the SPX. We saw an abysmal opening on Friday then the bulls must have reconnoitered under the Buttonwood tree and started buying. A 50 handle rally off the lows was impressive. You have to give credit where credit is due.

This was fun to watch as some of my short positions started pointing at me while they laughed hysterically.

You never really know if a stock or an index has put in a double  bottom until after the fact, but it kind of looks that it it may have.


SPX managed a close above that fat round # of 1950. The daily MACD also crossed up which is basically a good thing.  Volumes were much better across the board too and indexes also went out on the highs.  Only the Russell didn’t close above its 200 day moving average , but that’s been bludgeoned like a baby seal anyway.

Apple reversed and went higher too as it came very close to breaking some lateral support.

The battle damage to most charts is still epic, so a lot of work still needs to be done.

An interesting note is that this rally stuck and didn’t get sold.

Anyway, Fridays rally seems more attributable to a weak ISM number and a weak jobs report, of  course implying once again gain that the fed wont raise rates until sometime in 2075 or later.

Earnings kick in this week, so things could get cra- cra.

Sign up for my 50% off earnings special today. We continue to ridiculously outperform this market.

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