Well AVGO certainly didn’t drive the market, but SPX found a way to rally without some of the chip stocks. The leaders today were MAG 7 and the Financial sector, while stocks like MU, SNDK etc severely lagged behind.

SPX took out some major key levels to the upside, putting a huge dent in the running theory that SPX was headed for further downside price action. The rally today certainly caught me off guard, especially given how AVGO traded post-earnings. I suppose sometimes a tweet will do that, as this was the primary reason for the sharp turn around mid-morning.

The daily chart has snapped right back to where it was last week, having a little mini V shaped recovery from the lows on Tuesday. To think just 48 hours ago we were at the lower end of the expected move, and now are just shy of the upper end of the expected move. This week has been quite the rollercoaster for SPX.

We not have a couple of pretty strong and significant green candles in a row. The most obvious next key level is around 7770, which is the high from last Friday.

Zooming into the price action, we get a better view of Friday’s high and why it is so significant. It is very likely the only real barrier between where we are now, and the upper end of the expected move around 7800. The expectation is that if 7770 breaks, then 7800 should come pretty easy.

I think it is also safe to assume that the momentum is very strong to the upside right now. Even on the shorter timeframe, you can see the magnitude and strength of the green candles vs the red candles over the past couple of days.

It’s amazing how fast the market can shift from looking bearish to actually being full blown bullish. On Tuesday we sat at the lower end of the expected move, wondering if AVGO and other factors would push us beyond the 1 standard deviation move.

Now as we head into Friday, we are close to the upper end of the expected move and it looks like momentum is incredibly strong to the upside.

With tomorrow being a Friday right before a long weekend, I see very little reason why we would completely collapse back down.

Did SeptemBEAR only last 1 day?