Bulls Huge Surge into the Zone

The bulls came back from the weekend in much better health with the intent of damaging the bears. Lots of hope on the Covid numbers out of NYC as well as the hope for the economy to reopen sooner than later. While I do love optimism, I don’t see the economy restarting so quickly. I think way too many confuse the curve flattening or peaking with things get dramatically better. But definitely count me in for hope!

Monday’s rally was a monster with the expected internals to match. The most beaten down bounced the hardest like mid and small cap stocks. The credit markets continue to fight back and function much better after the Fed’s historic tsunami of liquidity.

Let’s revisit the zones I have been discussing where the first bounce could or should lead. Below is the Dow Industrials and you can see that the rally is right in the middle of the zone and closed above the high from 7 days ago which means there should be some follow up on Tuesday or Wednesday.

The S&P 500 is below and it’s essentially the same. The index just made it into the zone as well as closing above the important high set 7 days ago. Follow through buying could take the S&P to the mid 2700s and possibly 2800 in a best case ahead of Good Friday.

If you would like to be notified by email when a new post is made here, please sign up HERE

Paul Schatz, President, Heritage Capital
Paul Schatz, President, Heritage Capital
If you have at least $250,000 of investable assets and would like to schedule a complimentary meeting, call, or video conference with me, please click on my calendar here email me at Paul@investfortomorrow.com or call the office directly at 203.389.3553.

Comments

  1. Glad they are feeling better – send my regards please. I hate a sick bull or any animal.

Speak Your Mind

*