Today, the stock market rallied on earnings expectation, which on the other hand makes me feel like wishful thinking. If the earnings show to be disappointing, the stocks will fall back down. Today’s gains were very impressive as the Dow Jones Industrial Average (DJIA 10,018, +274.66, +2.82%) closed above 10,000 points for the first time since June 28, boosted by financials, technology and energy stocks. The S&P 500 (SPX 1,060, +32.21, +3.13%) rose 3.1% to close at 1,060, and the Nasdaq (COMP 2,159, +65.59, +3.13%) advanced 3.1% to close at 2,159.
These gains would normally change the market status into a confirmed rally, but in such a volatile environment we are recently experiencing I would stay with a Rally Attempt status and wait for confirmation to see whether this rally sustains or it is just another bull’s trap.
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