Ripping higher on follow through from yesterday's reversal.
Is the Hilsenrath "Fed leak" regarding another possible non rate hike making the rounds? Who knows. Today feels a bit like frontrunning.
Asia had a rough night, but Europe is sky high.
Liking the current sentiment too.
Or else what? Or else it won't fit into some neatly packaged narrative of a Santa Claus rally?
The market, like the universe, is indifferent. The toughest thing as a trader is aligning with that.
As someone who views the current juncture as part of a larger market reboot, I also loved seeing this article today. Pessimism yields its opposite, just as euphoria does.
Maybe that's what traders were reacting to. . . yesterday.
Quiet. USD hanging tough.
Crashing back to earth as probability of a hike rises to 80%. Nothing is ever certain, however.
WTI crude bouncing. NG falling.
Gold and copper down, silver up.
Currently using the chart of crude to formulate a thesis for the S&P. Both are highly correlated lately (which can disappear in a flash).
But if crude is indeed leading, both may be close to huge rallies.
The market liked the 1996 call better than the 2007.18 Fib, reaching -- and rejecting -- 1993.26 yesterday.
If the S&P is forming a wedge like crude, today's bounce could be a small confirmation of it. Therefore 2042.35 could be in the crosshairs.
A more aggressive target might the 2052.23 gap which is near the 61.8% Fib retracement level, and more importantly, both the 50 and 200dma in the 2060 area.