MARKET GOES UP WHEN THERE ARE MORE BUYERS THAN SELLERS

That simple is that. Recently that is the biggest lifting power. The DJIA performed well last days, S&P 500 and Nasdaq hit their biggest one-day point jumps since late 2011. DJIA is up 0.2% for the year, after tumbling into negative territory in the earlier stages of the pullback on Oct. 10. The index has fallen from almost a month and by now partly recovered, since the buyers came back to the floor.

Most of us just say, the market was oversold, that is true, but honestly the market could be oversold for 2-3 months without any great rebounce. This 4 days winning streak rally means the sellers left the floor. That is funny the biggest rallying days always come in corrections and in dips not on the tops. We are expecting more gains after the follow through day, Tuesday. Our first target is 1.970 on SP500.

The BFM Assets Team.