Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
The market is coming into Thursday overheated short term as the now familiar “V” shape bounce is back. In many ways this is identical to the last move off lows in late June when after the initial oversold bounce, the S&P 500 rallied 8 sessions in a row in July. It then took a 1 day break, rallied 4 more days, and that was the majority of that move.  Similarly, we had an oversold bounce in late September, and then entering today the index has rallied 7 sessions in a row with the moves this week mostly on gap ups overnight. If a similar pattern as last time holds, a short term rest soon and then it continues.  It is no longer the surprising move, but the expected move in the quantitative easing era. Speaking of next week is the Fed meeting which many believe a taper will occur; you can only imagine the euphoria if there is no taper.
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