The Dow traded in a 1,022 point, or 4.3 percent, intraday range today. That is emerging market volatility, folks.
What a close to an ugly week and a bookend win to the week for the bulls.
Classic double bottom bounce for S&P500 futures off its 200-day moving average, but was rejected at its 100-day to close off the intraday high. The traders and algos tracks all over this market today.
Note the first bottom was made in overnight trading early Tuesday morning; the cash S&P500 never had a chance to trade there.
Out of the woods? Don’t know but doubt it.
Just as trees do not grow to the sky, dead cats do bounce, and the oversold conditions should generate some more bounce. This is a process and reveals itself only one step at a time.
If the market is in the “heal thyself” mode, the first upside target for the S&P500 is today’s high, the 100-day, at 2638 and then 2650. These seem meaningless, however, given the yuge volatility.
We are looking more to the bond market for direction in stocks because that is where the fire started.