Not surprisingly, today the algos and day traders made a determined effort to rally an allegedly “oversold” market. That’s what the machines do in a casino that has become uncoupled from reality after years of egregious central bank money-pumping.
As a matter of pure price action on the trading charts, we have no idea whether they can muscle the averages back above the 200-DMA maginot line or not. Today actually ended in a draw with the S&P 500 closing dead on its 200-DNA at 2767.
Indeed, today’s 37 handle gain essentially happened in the wee hours last night, when the futures market was instantly pushed to the 200-DMA. There it functioned as a lure, inviting the cash market homegamers and retail mullets to take the bait.