SPX conquered the 2/5 high. Breadth was +63%. New highs expanded a bit to 91. New lows were stable at 24. Bulls were busy buying the intraday dips.
The futures ended the day just above the upper channel line. They rallied more after hours. Showing strength and remaining above the upper channel line would put them in accelerated up move mode again. Coming right back in tomorrow would indicate a pullback to the 20 SMA is likely.
The green count remains above 50, but below overbought levels. There is more room to rally.
Since 2013 this market has loved to make V bottoms and does not know what a lower high is. We are clearly well past the point of a retest of the low in the near future. If past is prologue SPX should make it to a new high. I think all those money managers expecting a retest are now experiencing a high amount of FOMO. They will probably be in chase the market mode. What happens if/when we make new highs is an open question. That could depend on what interest rates do. I would expect a lot of negative divergences because of the severity of the sell off and the V bottom. To keep a larger correction from happening the market will have to push to new highs and keep going.
Bob
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