Hail Mary

The combination of the latest hail mary passes by the government and end-of-the-month portfolio dressing has certainly helped the tape.

After breaking through the S&P 850 barrier, we briefly tested the S&P 875 level that I talked about last Friday as an important level to watch on any upside foray. In short, a sustained close above that level (and absolutely no retracement below 850) is the first step of many to confirm that this is more than just a temporary end-of-month snapper.

For now, expect traders to continue to push their luck as fading the sentiment extremes (buying oversold & shorting overbought) continues to pay the bills. As you know a large short-squeeze is currently underway in the financials and there are nice profits to still be made there as long as you trail and scale and don't get too greedy with those trades.

While I don't want to rain on today's parade, another day of this kind of upside traction will push us back into overbought territory which makes the risk/reward calculation start to tilt toward more risk than reward just as we finally gather some upside momentum again. No one said this is easy, right? But, we will deal with that one tomorrow.