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We got a rally today. Not the rally, but a rally. The S&P was up nearly 2% when I recorded this, and the NASDAQ was rockin’ more than 2.5% to the upside.
We can chalk this up to CPI this morning; traders read the tea leaves and decided inflation had cooled off and it was safe to come out.
Stocks are on fire. Enjoy it, but don’t get too comfortable. Rip-your-face-off rallies like this are a sign that the market is still really volatile.
What we’re seeing right now is a violent, reflexive bounce. Like I told everyone this weekend, the expected move was +/- 117 – that’s a big number.
I’ll show you in my charts, though, that this has actually taken us… exactly where we’re supposed to be in terms of the expected move. I’ll draw you some more charts that’ll put this rally in the proper perspective.
After all, perspective is everything. Here’s what you need to know tonight…
