MONSTER RALLY WITH EXTRAORDINARY BULLISH SENTIMENT

The rally has arrived as we forecasted beginning of this week. We have had many new records this week. Yes, this week will be in the books of trading history. The market not only rallied in crazy way with around 5%, but scored the best 2 days gain since 2002. I see the comments that traders are blaming for this fast rally the FED and new Cuba policy. This sounds like some kind of a conspiracy. Whatever they say, the point is that at the strongest bull market rallies you don’t really know what the main force behind the gains is.

The Dow delivered its biggest one day gain since 2011 and got back really close again to shouting distance of 18.000. First time happened since 2008 the DJIA recorded 200 points daily gain. The S&P 500 delivered its biggest one-day gain since 2012. And first time since 2002 the S&P500 posted two consecutive days of gains bigger than 2%.

Yesterday:

• DJIA +2.43%
• S&P500 +2.40%
• Nasdaq +2.24%

The other stock markets are also massively in green territory:

• DAX +3%
• ASX 200 +2.9%
• Nikkei +2.4%

Technically the Dow Jones deleted the 10 days drop in December within 4 days and recovered back to the record territory and erased all resistance levels. Recently the index needs to retest the 17.960 level and then after a few days consolidation the bullish sentiment is going lift higher the index into the untouched territory.

The BFM Assets Team.