Did a Major Correction in SPX End Yesterday Morning?

The powerful rally off of yesterday's low at 1867.01 into this morning's high at 1940.25 represents a 27% recovery of the entire downleg off of the May high at 2134.72.

In other words, for all of the fireworks off of yesterday's supposedly, capitulatory downside open, through this morning's supposedly bullish news about a China rate cut, the SPX really has not repaired any of the damage inflicted by recent weakness off of a 6-month top formation.

That said, should the SPX claw its way above 2100, well, then the directional narrative will change.

For now however, despite the intense upside reversal, the bears remain in directional control of the SPX.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!