How quickly the optimism fades after the Goldilocks nonfarm payrolls report and CPI. It has been 5 weeks since the early February panic, and we've yet to have the retest that many were looking for. If SPX goes up to 2900 next month, then it moves down to 2530 in the fall, would that be considered a retest?
The market has been making higher highs and higher lows since the February 9 intraday panic bottom. Nasdaq 100 has actually made a new all time high since then. 10 year yield has stabilized in the 2.80%-2.90% range. While not very pessimistic, the general public is definitely not feeling that comfortable or complacent at this stage of the rebound.
It looks like the February plunge did its job of shaking out the overmargined and weak hands, and grinding back higher. Not as smooth of an uptrend as the ones in 2016 or 2017, but still strongly upwards.
I am not a raging bull, but I am an opportunistic buyer today if we get an intraday dip to SPX 2740-2745 area. I would hold that long for a target around SPX 2800.
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