The texture of the markets feels a bit different today. Stocks gave up all their overnight gains by the open. At first, it looked like we were heading lower. Then the market started to ramp up and you can now thanks Mr. Trump for it. We got to the highs of yesterday, which will act as resistance. If we start closing hourly above there, we’ll see short covering start to occur.
Overall, it seems like fear is subsiding, at least for today. I think we’re starting to see shorts cover as we aren’t seeing huge new lows. We’ve been stable at this area for a few days, as weird as that sounds.
If you look at the charts, it’s just a big range we’re trading in at the moment. Yes, it’s $12 on the SPY, but it’s a range.
I’m still keeping things light. There’s no reason to step out yet unless we need to.
One interestingly strong market is the US dollar. You would think the Fed would be able to weaken it somewhat. But it’s been on an absolute tear.
UUP Hourly Chart
Normally, that keeps stock prices in check. But right now, nothing is really obeying any rules.
Here’s the easy way to look at everything – above $258 SPY is bullish, below is bearish.