In addition, my trading friend Erin pointed out that a statistic she watches signified a intermediate bottom was in place on Monday also. She looks at the percentage of stocks that trade above their 20 day simple moving average. When less than 20% of stocks are trading above that moving average a possible market bottom has occurred. On Monday, only 16% were trading above their 20 day SMA.
Major news stations pointed to how traders took the FOMC meeting decision as a bullish signal. However, the VIX signal and Erin's research showed that the bullishness started long before this afternoon's rate hike decision. Lets watch to see how bullish the markets can get. SPX 2100 is the first number to break through.
