There could be another 5% SPX added to this great V-shaped recovery rally from the deep recesses of gloom & doom for the BULLS but the market is not on a ST TOPPING phase that could be extended to an IT TOP and return to the December lows.
However, there are still a few more reasons for spikes up - resolution of SHUTDOWN, more "progress" in CHINA/US Trade war although most of that has already been priced into the market, and even more dovishness from the FED but there hardly seems to be any of that left in the FED cupboard after they fell all over themselves - looking very foolish in doing so, as if they were scared of further market decline - trying to talk the market up after the bear raid in December.
My personal wish is for another 5% or so to SPX 2800, the higher it goes the faster and further it will fall, during which time I could put most of my high risk portfolio to do something more useful, e.g. buying a few dozen deep-in-the-money QQQ puts and even buying some of the new Volatility instrument that replaces the cherished VXX. Goodbye VXX
The Chinese problem is not all TRADE WAR; much of it is -- as the experts say - STRUCTURAL
#China’s economy slows to weakest pace since 2009 amid trade war. GDP survives but details show weakness. The details show that the infrastructure investment is shaping up to be the engine for 2019, ING says. https://www.bloomberg.com/news/articles/2019-01-21/china-s-economy-slows-to-weakest-pace-since-2009-amid-trade-war …