Bulls Making a Stand
Thursday saw upside reversals in all of the major indices which means that stocks opened lower, traded a little lower and then rocketed higher into the close. That should comfort the bulls, at least into next week as a solid seasonal tailwind blows into the holiday.
Is it possible that we just saw the final low on Thursday? Sure. It’s POSSIBLE. I am not pounding the table with high conviction like I would or will if stocks revisit the lows from the last month, but I am also not going to ignore what the market tells me either. Regardless, as I offered the other day with my two scenarios, I think stocks are going to new highs before any bear market settles in.
As I finish this up it looks like a moderately lower opening is setting up. If the bears can accelerate the selling, it could create some despondency among the bulls. However, if the bulls can fight off any afternoon downside momentum, that could ignite lots of short covering and a decent rally for a few days.