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The character of the market really started to change last Friday morning after the “Jackson Hole Reversal” in the first forty-five minutes of trading. Since then, it has been all bulls, all the time. You can see the clear pattern of higher highs and higher lows on the above on the chart of the SPY.
Currently, the market is giving back the strong gains from this morning. It is not surprising to see quick profit-taking after the volatility we saw this summer, so this fade should not be met with shock. The real issue is whether the simple pattern since Friday favoring the bulls will persist.
Finally, note Freeport McMoRan (FCX) is exceptionally bullish today, easily clearing that prior key $46 level. Just as with the transportation stocks, the bulls need Freeport and copper strong here.
