It was a great day for stock purchases, as markets were betting that Congress would provide some kind of incentive. There was also a close of shorts around the weekly support levels, which solidified the momentum. The best representatives in the SPX are L Brands, American Airlines, MGM Resorts, Norwegian Cruse Lines. Energy is the strongest sector today.
Each bottom starts with a rebound, but not every rebound is a bottom. With that being said, the bottoms are built on the back of skepticism, which further ignites the fire.
As for the chart, it is staggering just how small those + 9.4% look compared to the big picture.
The road up will be a long and difficult one.
Trader Aleksandar Kumanov