That sure looks like a W bottom on the S&P500, no? Not the classic trajectory and confirmation, not to mention the compressed time frame, but you’ve got to respect the price action. The macro swans are still out, so the question is are they priced? We don’t know and not willing to make a huge bet either way. The next negative headline and tape bomb will be the true test.
The 50% retracement of the recent closing high to closing crash low is 1232.35. After that is the 61.8% retracement at 1258.86. We’re focusing more on taking some positions in emerging equities, particularly Korea and Brazil. Stay tuned.