Today's rally was very impressive in percentage terms. How much higher could we go from here?
I have barely done any general market analysis yet, but one thing I will say is that, judging from the Russell 2000 chart, getting another 15% before severe resistance seems quite plausible.
This is certainly not a projection, and the time scale isn't meant to be accurate. My point is simply that, given the almost non-stop plunge that took place over the past three weeks, there is ample room for upside with very little resistance until we get back to, oh, about 800 on the S&P and just under 8,000 on the Dow.
I am presently short the /ES and will happily cover if we get anywhere close to 700. I would be very happy to be a buyer at lower prices, since I think today's push higher will do a lot to get some much-needed confidence out there.
