S&P 500 more than erased Thursday‘s decline – buy the dip mentality won, and the advance was that broad-based that it makes sense that I examine the theoretical possibility of a new bull market being born. Short-term, the VIX and VVIX moves point to a serious uptick in volatility ahead – it‘s approaching, but given the strong bond market performance on Friday, not likely to happen at the very start of the week. Given the positive reaction to consumer confidence data coming in above expectations – it wasn‘t that hard to see in the aftermath of the data release – this run in stocks isn‘t yet done, and still has the potential to come nearer to the 200-day moving average, currently at 4,328.
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