S&P 500 UP over 3-percent...No need to add much…

Today’s move put the S&P 500 firmly in an uptrend (so much for the questionable charts that I mentioned yesterday).  The next hurdle is to get past the 1220 area on the S&P 500 since that represents the previous highs during the correction.  After today’s big run-up I expect some profit taking and a breather.

This bounce is for real, but there are a lot of people who don’t believe it.  Sentiment remains low.  Volume was low, but today was a holiday for many and volumes are usually low at a bottom because a lot of traders don’t believe it really is the bottom.  In other words, we can’t make any conclusions from today’s volume.

I’d like to see the VIX keep falling. That would be some good news and provide some evidence that the rally is sustainable.

I don’t know how long this will last.  Europe still has a long way to go.  The US economy is still questionable with extremely slow growth.  In the mean time…I’ll take it and keep a wary eye on the markets and the NTSM analysis.

The NTSM analysis is BUY again today. 

I sold on the 27 July sell signal at S&P 500 1301 and I bought back in at S&P 500 1155 on 7 Oct

I went 100% long in the long term portfolio at S&P 1155 (100% stocks in the 401k.) on Friday 7 Oct after Thursday's BUY signal . (See the page “How to Use the NTSM System” – the link is on the right side of this page).

I am 100% long in the trading portfolio.  (Initial position established 4 Oct at 1124.)