BUYERS ARE BACK

Definitely for the last two days – Friday, Monday. A lot of green we have seen Monday. Yesterday all three main indexes closed in green, the Nasdaq was the flagship in the rally. After starting out in the red area in all US markets the trend changed and closed nicely higher. At the bell, the stocks ended higher across the board and were rising for a second session.

• S&P 500 up 7 points, + 0.4%, to 1,885
• DJIA up 20 points, + 0.1%, to 16,511
• Nasdaq up 35 points, +0,87% to 4,126

Due the sentiment, that is pretty nervous we expect greater volatility in the coming days, maybe weeks, which might be tough, but I tell you what, folks. On the other side this volatility should present many buying the dip opportunities.

Recently many prominent investors and actors declared the bull run is over, at least for now. Only this anxiety can lift up higher the markets and get back to new high levels. Honestly I do believe this is still a bull market, the bullish trend is not violated last week, only some significant sectors made corrections and fell only 0,5% which is not a disaster and end of the world. The rebound in the last two day shows that there are many buyers out there at bargain prices.

We are still on the long side of SP500 and waiting for the breakout at 1.898.

The BFM Assets Team.