The DOW finished up 178 points (2.5%), the S&P finished up 3.2%, the NDX was up a whopping 4.1%, and the RUT gained 4.5%, running right into a resistance area on my chart. The XLF gained 6.5%, and the transports kept rolling for another 3.2%.
Since all the indices made new highs, I was just flat out wrong yesterday about wave 5, and additionally, what looked like an ending diagonal was, in fact, not.
Can we really reach those targets? I really doubt it, there’s a lot of overhead resistance we would have to get through to make it that high. I wouldn’t play for it, that’s for sure.
Internally, we had a very rare event that is quite bullish in that it was the third 90% up day on the NYSE in the past 6 sessions. That’s screaming bullish, and will have many technicians calling THE bottom (not me). It was also a 92% up volume day on the Nasdaq. Advancers were about 3.5 to 1 on the NYSE and new lows contracted to 17.
So, overall a sneaky bullish day, one that did not initially look like it was going to race higher at the end of the day, but did. It also did not feel like a 90% up day, but it was. Definitely open to the fact that this could be something more than a wave 4, but there is always a correction somewhere, nothing moves in a straight line. This rally is really going to sucker in a lot of money. It’s a black magic market… hey, I had a lot of better song titles for today, but Youtube keeps pulling the good tunes! Not that I don’t like Santana, I do…).