As I mentioned Thursday, “If we don’t see a quick rebound in stocks like tomorrow or early next week, the weight of this evidence will become heavy indeed.” Well, it looks like we got that quick rebound and it happened at a good spot. For now, the (selling) pressure is off but the negative conditions that we outlined Thursday are still present and worth regular monitoring. Assuming the markets can navigate through the Federal Reserve meeting on the 16th of December without falling apart (S&P below 2020), the next critical test will be a break above the highs of the year, marked as a close on the S&P 500 above 2130. A breakout to all time new highs would no doubt put the bull back in the driver’s seat. Until then, we’ll remain ready to cut and run. Just a quick note, so you can breathe a little easier.
Cheers!
Sam Jones
