Good evening StockBandits!
The oversold bounce which began last Friday didn’t really surprise anyone, given that stocks were stretched and coming into the lower ends of their trading ranges. The continued lift since then has also had that customary feel to it, with yet another V-shaped lift unfolding. It has happened in spite of highly-anticipated news, namely today’s ECB announcement on the stimulus package.
The arrival of the stimulus package sent the US index futures spiking early this morning, although the enthusiasm had waned by the opening bell. From there, what we saw was again customary, as an opening gap up got filled almost immediately, before yet another reversal kicked in to take stocks green again. The market never looked back from that one though, and we trended higher for the remainder of the session.
Tonight we’re right near the previous bounce highs (S&P 2064 and NAZ 4751), leaving us with a bit of a minor test to contend with. Should the bulls happen to maintain control and push past those hurdles, then the next stop could be the December highs. Let’s take it one day at a time though, because the trading ranges are still very much intact.
On the swing front, I was able to book CDK today as it reached my target. CNC remains open and working, while VNET has yet to trigger.
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
