In my last post on Thursday 8th May I was looking at the bear flag inflection point that US equity markets were in last week. That broke up hard on the 90 day delay on most of the China tariffs over the weekend.
I was saying in that post that a break and conversion of the 200dma on SPX would open a possible retest of the all time highs, and the 200dma on SPX has now been converted with a strong gap over it on Monday and closes well above it every day this week.
Is this the end of market excitement this year? I think probably not, but it is the end of the beginning of that market excitement, and I think a retest of the SPX all time high soon is now likely.
After that I still think that the main event of the markets this year may be based around a crisis in the bond markets but elsewhere there are still important points to remember.
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