A whipsaw session saw U.S. stocks rise, overcoming earlier losses as a rout in commodities abated and eurozone leaders considered proposals to offer Greece emergency financing. The turnaround in crude seemed to help the market.
The gain marked the biggest intraday reversal in nearly four years for the Dow, which dropped as much as 218 points at one point. The blue chips wound up the day with a gain of 93.33, capping their biggest intraday swing since October 2011.
In the chart below, you can see that things perked up just before lunchtime. 2040 was the big support level and the SPX came withing about 2 points of that area. Things took off from there.
The short squeeze kicked in and that’s all she wrote. Whats important now is the follow through day. The follow through day is as important as what happened today.
Why I think we bottomed for now:
1- 2040 held
2-The McClellan Oscillator, which I follow religiously, screamed buy today. The Oscillator was moving higher even as the market was going lower. So a powerful divergence.
3- Today was the biggest intraday reversal for the Dow Jones in four years. That’s big.
I added 4 names today (2 ETF’s)
TNA, UPRO, HDB, NVAX As you know the entries and stops are on the P&L
See you in the morning.