It didn´t take long for the markets to reignite the bullish sentiment. Earlier today we outlined the possible bounce scenario in various indices. Since then, US indices have been surging and they all trade at day highs as we write this.
Below are just a few charts for a quick review.
Trannies´ hammer candle is followed by a huge day up so far. There is no real resistance until the 10 500 level. As we outlined earlier today, we are not turning long term bulls, but believe the bounce could confuse many again.
The Russell is bouncing as well, but with less intensity.
It was only on Friday we had the VIX trade above 18. The VIX is now sold heavily and trades at 14.75. Investors seem to tilt from panic to inverted panic within a day.
Let´s see where we head next, but betting on a break out, either way, in pretty much any asset, continues to be wrong.
Source; charts by Bloomberg