Shorts (me included) definitely April Fools today.. Today's open crystallizes 2 things: DON'T TRY TO INTERPRET NEWS and The Fed and Wall street do work together, scratching one another's backs. How can any objective person Buy this Morning's news? Perhaps ISM is bad and early protection needed?
This is typical action in a secular bear market. People call bottoms. Every time there is a piece of bad news they say "The worst is over, time to buy". Eventually they are right but in the interim short term trading opportunities are created with the short sharp counter trend rallys. It isn't about logic but the sentiment of the players. Sentiment indicators have been at fairly extreme levels for the past week which suggested the market wanted to rally, in addition the reaction to the bad news the last few days and the market just not breaking was the biggest tell. Have we had the THE bottom in this bear? I haven't a clue but can the market rally despite all the crappy news, absolutely, infact it is to be periodically expected.
Tell you the truth if I was shown the S&P daily charts yesterday not knowing anything fundamental the Chart is a buy.. The negativity of these boards (and everywhere else) definitely clouding my thinking. I guess I have a morning to manage.