Unbelievably, it seems as though the market is climbing another “wall of worry” higher, particularly given the negative sentiment readings I discussed this morning. Regardless of arguments to the contrary about sentiment surveys, the bottom line is that the market has staged another V-shaped rally off heavy selling last week to new highs.
Observing the 30-minute SPY chart below, we should be on watch to see how this steep rising channel dating back to last Friday’s lows is negotiated. Also keep in mind that a slight giveback to 158 (about 1580 on the SPX) or a few days of basing sideways would be best for bulls.
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That is one, umh, nice picture there, chess! 🙂