I could not help but trade after-hours AFTER the news broke about the failure of the Mexico Tariff talks since it was almost sure the markets will reverse from the impulsive move down. And, it did, and regained all the decline.
This is another confirmation of the immense power of the FED plus TRUMP PUTs that can hold this market up and continue this rally to new highs and beyond....will you SHORT this market as long as those two bullish forces exist?
You know the FED will cut rates - anytime, they have the power to do that, they have told the markets they will do that when they feel it is necessary and they are free to do so. TRUMP can tweet anything that is bullish and the market will shot up! e.g. the President can say he is giving the Mexicans a month's postponement of the tariffs and talks will resume next week. Or, the President can tweet he will be speaking with his Chinese counterpart and market will rally.... that's the power of the PUTs combine.
I will buy any decline UNLESS there is a major geopolitical event or really bad news on the economic front.
Next resistance is the 50ma; immediate resistance is the 20ma which where the SPX closed today.
Unless there is a serious global political or economic event or any major global event, then SPX can take out the previous record high and move above it.
All that above is the OBVIOUS and we all know markets are not that easy or else we will all be billionaires.
So, I am bullish but alert and ready to close positions and reverse.
20ma yellow-ish
50ma black
200ma blue
VIX is the grey line