Up over 6.5% on the day
The S&P index has had an impressive rally in trading today with the index up over 6 1/2%. The index was up around 7% the highs.
However, the move to the upside still has work to be done from a technical perspective in order to shift the bias more to the upside and give buyers more confidence.
Specifically, looking at the hourly chart above, the price action has stalled ahead of its 50 hour moving average. That moving average currently comes in at the 2414.31 level. The high for the day has reached 2400.60. The price last moved above its 50 hour moving average back on March 4. But on March 5 the price move back below and has been below since that time. A move to the 50 bar moving average would be a 10.15% move off the recent low for the S&P index. Seeing 10% gains are plain-vanilla in sharply moving markets. Keep the level in mind.
The good news from a technical perspective is that the price has extended above a topside trend line at 2337.09 currently (and moving lower). Stay above that line gives buyers some upside hope.
PS Adam spoke to the 10% potential in the stocks in a post on Monday. In it he said:
Of course, the timing is the tricky part here. This could very well spark a reversal in risk sentiment for a few days. These are emotional times and stocks could easily rally +10% and that would have knock-on effects for overall sentiment and unwind some of the extreme USD overbought conditions.
