8 or 9 More SPX Index Points And We Are Out Of The Woods!

As I write this at the end of the day, I can't help being surprised by the sheer power, stealth and breadth of the rally today. The GDP numbers were indeed good, and yes, some of the impressive gains that we saw were probably driven by month-end window-dressing that a lot of mutual funds started to do today before the Fed meeting next week. The reality however is that the SPX still closed below its relevant resistance levels (hence those extra 8-9 SPX index points, that we need to see, are indeed important). Last but not least, the XLE (the energy sector ETF) recovered a lot of ground today, especially in the afternoon, thus spurring the momentun behind this rally. All that remains now is for the market to clear the 1205 SPX index hurdle level, and maybe then we will finally see that long-awaited 4Q rally. Tomorrow is another day!