Markets are rarely boring, that’s for sure.
Stocks power-rallied off support this morning as a short-squeeze helped fuel price action higher.
Let’s dive inside action and note key levels and the trending stocks of the day:
Take a moment to review the prior two posts that set the stage for today’s bullish reversal:
We’re building off the following quotes/planning from the end of last week:
The Breadth Divergence does suggest the outcome here will likely be another bullish inflection up off the 2,045 target support level.
If so, continue playing long above 2,050 as bears “stop out” and buy-back to cover, joining with buyers/bulls, both of which will help push the indexes higher.
Price “should” move up off the 2,045 level – away from this trendline price support – and toward the 2,080 level again. That’s the clear, logical dominant thesis given the data we have right now.
Despite Friday’s futures market bearish action, buyers continued the bullish rally as short-sellers once again were stopped out, ironically fueling the market even higher.
View the prior posts for target planning within the triangle/rectangle pattern on the Daily Chart.