So far I’m seeing everything that I wanted to see today to make a decent case that the correction is over, with a rally to follow next week & quite likely beyond. Again, I can’t say that with absolute certainty & the risks for being long or short now are still high due to the elevated volatility but if we continue to rally into the close & print solid gains on the broad markets, we could see that intermediate & longer-term scenario that I’ve laid out with the market heading to new highs in the coming weeks to months before the next major correction.
Be careful, stand aside or keep things light if you are not comfortable trading this market & best of luck on your trades. How the markets trade on Monday & early next week should also help give us some clarity on whether or not the correction that started off the January 26th highs has run its course or not. Congrats to those who caught the day trade/potential swing trade into the close today from these 1-minute charts posted earlier as the SPY has now rallied about 3.4% from that level as I type. It’s not always easy to step in to buy when it looks like the selling will never end but having a trading plan & likely scenarios laid out in advance vs. blindly deciding where & when to buy or sell is what trading is all about. Have a great weekend!