If you are long SPX, this is the time to take additional profits and trail your stops to just below 50 dsma. You can also get out altogether and buy the pullback. It all depends on your style.
This morning is all about liquidity. Central banks realized that there will be no tomorrow if dollars are tight. Use this opportunity to cut your losers, and trail the stops on your winners. Today is not the end of the crisis, today is a good day to celebrate the existence of Fed (if you are long).
Short covering en masse...
Update on Nov 30 @ 11:20 am
I should add that today we got yet another proof of the fact that US is not in recession and is not going into one any time soon. ADP, Chicago PMI, Pending Home Sales, and Retail Sales over the Thanksgiving weekend, all confirmed what I have said in the past month or so - no US recession yet. Rally should continue, expect a pullback, but use it to get longer, I say...
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