Investors received their catalyst! Merci beaucoup! The major market indexes rose 1.1% or more on increased volume today in reaction to a “market-friendly” vote in France on Sunday and talk from the Trump team about a plan for US corporate tax rate reductions. This gap-up move over important support levels on higher volume has caused our official outlook to change to Market in Confirmed Uptrend. Investors need to stay alert as risk levels remain elevated. The next three days will be an important “tell” for the strength of this rally. If the market can avoid adding any new distribution days (signs of professional selling) by Friday, bulls should become further emboldened and the indexes could march to new highs. If selling returns asap, expect todays gains to be reversed and this rally to fizzle out quickly.
Have a Triumphant day!