Well, there's the bounce, so next question is how long does it last? The obvious upside target on the chart is the 50 MA, which for the S+P 500 is 4374. Prior to that would be the 4300 level, which was the high last Thurs. So those should be the initial targets to watch.
Looking at the bigger picture, Rickards had some interesting comments on the China lockdown situation. He pointed out that President Xi is due to get his 'President for life' designation in November, and a key part of his motivation for the ultra-strict lockdown policy is to avoid an out of control health crisis in China that could derail his ascension to 'President for life'.
But the strict lockdowns are jeopardizing the Chinese export economy, so Xi is walking a fine line, and the big loser is the global economy, which relies so much on Chinese exports. The global battle to contain inflation is also made a lot harder by the Chinese lockdowns.
Anyway, I may just sit this market out, and not try trade these short term rallies. Probably not worth the risk and aggravation, especially when cash and T-Bills are finally paying a decent return. Then re-evaluate when the S+P 500 gets down to the 20% bear market level (3840), which seems likely at some point.
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