The rally over the past week in US equities reminds me of this time exactly two years ago. The S&P 500 bottomed on March 23 and there was plenty of skepticism as it closed out the month, with people pointing to quarter-end flows, rebalancing and other technical issues for the rally.
In the end, that wasn't it as the market continued the strong rally in April (which is a very strong month seasonally) and rallied almost uninterrupted until this January.
Today was another good day for the bulls with US stocks finishing at the best levels of the day. That sets up another good day tomorrow and argues that buying the dip is back.
- S&P 500 +62 points, or 1.4%
- Nasdaq +1.8%
- DJIA +1.0%
- Russell 2000 +0.9%
