Just a few thoughts…..
What a morning. S&P futures were down most of last night but everything changed when the world’s central banks united like a Financial Voltron to save the world. At the time of this writing the Dow is up over 400 points and the S&P500 is up 40 points to 1235. This is the exact level that the market broke down out of its Symmetrical Triangle.
The S&P is now back above its 50-day Moving average (that is now upward-sloping). The Relative Strength Index (RSI) has remained in bullish mode during this entire correction which is a another positive. And Crude Oil stayed above its 200-day moving average and was trying to tell us last week with its relative strength that the selling in stocks was a bit too extreme.
There is some trouble ahead at the downward-sloping 200-day moving average for the S&P500. This area coincides with former support from back in March and June. This former support has been trouble over the past month or so as polarity turned that area into resistance.
The stock market looks strong today as US Treasuries are getting destroyed. $TLT made a lower high last week but remains above a rising 50-day moving average. Watch for further breakdowns in this ‘safety’ trade ETF as a sign of more risk-on action to come.
Tags: $SPX $SPY $ES_F $TLT $DJIA $DIA