The market followed through on yesterday's late reversal. We closed one of the open gaps below.
Yesterday SPX bounced off the 100 EMA. After hesitating a while this morning the bulls followed through on the upside. Breadth was only +54% and volume was light. So far this looks like it could be nothing but a dead cat bounce.
The futures found support at the 200 SMA. The 20 SMA would be the first target and the 50 SMA the second.
The market is bouncing from a short term oversold condition. It remains to be seen if this is just a bounce or something more. I don't have a clue at this point. The sell off after the FED announced free money from now until the cows come home bothers me a bit. I believe the market wants more fiscal stimulus, but I am not sure that is going to happen before the election. I am going to keep a close on this bounce for strength to indicate it has legs or a roll over to head down again.
Peace and good health to all.
Bob
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