For perspective allow me to once more reiterate my three reasons for why stocks could continue to rise into late August:
- Seasonal strength in mid- to late August;
- A tendency for stocks to rally into monthly options expiration (with the next being on Aug. 21); and
- Overly bearish investor sentiment.
Thanks to Wednesday’s V-shaped bullish reversal, i.e., last minute save, traders now have a defined line in the sand around 2,050 to 2,060 on the S&P 500 to use as the stop-loss area.
Read my full analysis HERE