Finally, there exists a catalyst, a pretext, if even dubious, for the market to rally.
So, enjoy it while it lasts....and it could close the SPX 2765 level today and much higher if the FED obliges with even a hint of
But, technically, significant damage has been done to the market and most of the underlying reasons for the decline are still there on the table so the market will have to find some way to reconcile all of that if it has to move beyond SPX 2835.
Maybe, there will be a quiet period that favors a continuing rally, maybe there will be realistic hopes of a trade war settlement, and there will be less political heat & noise.
More importantly, we will finally see the "Art of the Deal" President who can work with Congress to pass an Infrastructure Bill etc.
On the other side, if those issues are not handled properly then the market will revisit SPX 2600 before the end of 2018.
First target is an SPX daily close above the 200ma @ 2765
At this time, I don't see a rally lasting more than a few days so I will waiting & watching for the bulls to show their strength or the bears to move in again to sell at higher prices.
Edited by dTraderB, 07 November 2018 - 06:01 AM.