Many people are wringing their hands about the sudden V-Reversal the market has made since April.
Here’s SPY:
Is it too far, too fast?
Well, SPY is solidly above the 200-day moving average and earnings have been surprisingly good across the board.
We’re at all-time highs, and the bullishness can’t be ignored.
And positive sentiment is rising again. The Fear & Greed Index is up from last week:
We’ve seen a comeback in financials also.
In fact, banks are now one of the top 35 hottest groups in the world. And Bank of America (BAC) has been on fire lately.
Here’s the chart:
A break above $48 could lead to a big move.
We’ll keep an eye on it.
Happy trading,
Scott
