Huge Day for US Stocks Yesterday

Wow. Just before the open, stocks gapped down more than 2% from the previous close. Then a 3% rally occurred with US stocks finishing the day up more than 1%. That type of action is often an indicator of an intermediate bottom in prices, as the last few weak hands get scared out of the market.

In the premarket hours today, stocks are indicating a positive open… up by over 1/2% from yesterday’s close. I would not be surprised to see US stocks stay strong for several weeks if we trade up today.

Of course, there is always the chance of some big political shock, given the propensities of our current administration and the misbehavior of the Russians, but that was quite a day yesterday.

Cheers.