What a crazy week so far. Stocks finished up roughly 5% today after losing about the same yesterday. Go figure.
I'm not sure if it's short sellers covering or just computer driven trading - but it's wild out there. In today's video I look at the last 15 years and point out that we bounced off a major support/resistance level. In english - we're at a tipping point. If the market breaks free to the upside there could be a nice rally on hand. But if it can't hold the resistance point then watch out, the markets could be ready for a major selloff.
On a separate note - bonds stunk it up today. 20 year US Treasuries lost roughly 5% and the aggregate of US bonds lost 1.25%. If you had a balanced portfolio today was just ho-hum as a result.
I'll continue to keep a close eye on what's happening and if a new rally is getting ready to begin or a major sell-off (one that would make the last two months look like a blip) is just around the corner.