Biggest rally since late-August
The 2.09% rally in the S&P 500 today is the largest since August 26. That an important date because August 25 marked the low for the year at 1867.
The low today was 1878 before the market stabilized and then turned sharply higher.
The question is: Is this the start of another big bounce?
The early signs are good. A big rally is the best way to start a turnaround because it attracts investors and stokes a fear of missing out that can lead to quick rallies.
Technical analysis
In the big picture, I think a wedge is forming. It's a very slowly narrowing wedge that could argue for prices remaining confined to six-month range for another six months before we finally get a break.
It's not quite winning the lottery but buying stocks at this time yesterday was certainly a better investment.
