Well, that’s a nice start to the new week. Overseas markets rallied overnight, oil rallied and the U. S. stocks joined the party. There really wasn’t much volatility as we spiked in early morning trading and basically held right at resistance for the remainder of the trading session.
For the day, the Dow Jones Industrial Average was up 228 points to close at 16,620. The S&P 500 was up 27 points to finish the day at 1945. Gold was down $22 to trade at $1280 per ounce, while oil was up $1.84 to trade at $32.43 per barrel WTI.
It will be interesting to see if the bulls can get through a major resistance level at 1950 on the S&P. If they can, it could put fear in the hearts of the bears and accelerate another round of short covering in addition to what we have seen for the past week or so. Remember, sentiment had, and still is quite negative, and traders were bearishly aligned. As we have pointed out, this could very well be nothing more than a sharp counter rally in a cyclical bear market, but there are no hard and fast rules on how bear markets end, so we can’t rule out that the worst is behind us. I’m not sure I’d bet on that just yet though. But we can hope.
Have a nice evening everyone.