minutes ago, we opened up roughly 1.5% higher than the close yesterday (spy and iwm) … almost completely erasing yesterday’s movement. We will see if it can hold, but this is a fantastic bullish start to the day.
We got within pennies of breaking yesterday’s high, which also coincided with the confluence of the 5 and 10 day moving average along with the 10 day volume weighted average … all of these sitting together at roughly 72.90 told me that this was the short term price target on the upside.
Opening at the high of yesterday’s strongly negative day means that anyone that shorted throughout the day yesterday are now in a losing position. Although it is going to take going over the high of yesterday to truly reverse the negative action, this is a great start.
If we can get over the high (of yesterday), we should start moving quickly up with all the shorts stops getting triggered causing a snow ball effect of rising prices.
I actually gambled on this occurring and bought at the close yesterday, and sold at the open this morning. I expect some back filling to occur this morning, so I wanted to lock in the profits of this trade quickly and then let the market tell me which way it wants to move from there.
As a sidenote, the QQQ’s are doing much poorer overall. They started as the market leader in this rally, but over the past few weeks it has definitely lagged in its’ performance.