An early selloff led to a classic intraday double-bottom and ended up with a rally. On the S&P500 daily charts we now have the 50 dma and the critical $1300 right here and looking at the overnight futures (up 0.75% right now) we might open above those two key levels. Whether that ends up being a fake-out peek above or a significant new trend up to at least the February highs remains to be seen. At this stage it pays to remain nimble, although on any further pullback to near last week’s lows I am a better buyer. Gold, silver, and oil and copper are looking jiggy again and I am long two out of the four. It is interesting to see stocks rally on the back of nothing but terrible geopolitical news oversees, invisible hand buying or something else…it doesn’t matter; price is the only thing that pays so stick with the trend.
SPX targets around $1220-$1230 remain, albeit with less conviction than yesterday.
