Well, I'll be - I guess you can create an intermediate bottom nowadays on a gap up. And there is no need to go retest that low. The new paradigm rulebook. I am still unclear why with a bevy of bad news the market gapped up this morning but we're back to all news is good news. The economic news this week has been disappointing to benign but as Bob Pisani says on CNBC today: the news doesn't matter. Portugal, durable goods, housing, oil over $105 (which 3 weeks ago was considered a reason to sell off)... doesn't matter.
I would definitely be stopped out of any index hedges now as the S&P 500 finally cleared the 50 day simple moving average at 1303. (at least the market has gone up during the actual U.S. trading session)
The NASDAQ has cleared the 50 day exponential moving average which was a key level for me... still a bit short of the 50 day simple for those who use that.
And it appears we are right back to something that was rare pre 2009, but has now become the common rule since. The V shaped bounce. As I said last week you need to carry around 2 rulebooks nowadays; the one that used to work in the 'old days', and the one for the new paradigm market.