So the market rallies because the 1%’ers in Spain will be able to get that new carpet in their plush penthouse apartments in central Madrid while the 99%’ers grovel in the dirt for scraps of food. Makes perfect sense to me. And don’t get me started on that revised GDP number.
Bottom line, short term trend line held and potential ‘sell’ signals reversed today. Call it what you want, short squeeze, oversold bounce, great news from Spain, etc, it really doesn’t matter. The only thing that matters is price action. If what started today gets traction tomorrow, then we’ll most likely see $SPX back to the 1460 area pronto.
I’m making this too hard and wasting a lot of time studying charts and breadth indicators. Here’s my new system.
Scale in on the bad news and then scale out on the good news. You’ll get most of the upside move and then you can hold some longs but with tighter and tighter stops.
You might find this site of interest.
GL and always be careful