September didn't start off on the right foot for the bulls. However, despite the lingering clouds of market doubt, the market has turned things around, and for the first time since July is showing signs of strength.
August was not exactly a month to remember. Goodbye August I said earlier this week.
Despite all the negative headlines, recession talk, trade wars, tariffs, Brexit. Ebola, Inverted yield curve... the list goes on and on.... I stated that we would again see record highs later this year. The question of timing was the issue.
Yesterday the market closed a hair over resistance. A point that it had been unable to break in a meaninful way all of August. This morning it's done what it hasn't been able to to in over five weeks.. break through trendline resisitance. And its doing it in a big way, with futures moving almost 1% higher.
Trade talks are back on, that is the excuse for todays smash higher. Will these gains stick? If so the set up is there, heading into the FED later this month for a lot more upside.
To think we sit a mere percentage points away from fresh record highs for the stock market, and the FED is set to cut rates yet again later this month.
Odds have also increased for two more rate cuts before years end. Cheaper money you say?
Central Banks ready to keep this expansion alive you say?
The price action is doing all the talking.
And with todays resistance break, its saying prices are going higher.