As measured by the S&P 500 index, the market did the two-step liquidation breakdance into the 5-day EMA (just slightly below the Globex low we identified as the key line in the sand today). By this time, the bears had made three attempts to turn the market in their direction and failed each time.

Just after I published the Mid-Day Outlook, the Algos kicked into gear, and the market rallied nearly 15 points into the close.

I will have more to say in the morning, but the bull survived another day. There were three good short trades, one sloppy long, one mediocre long, and one final fabulous long. I will lay them out in the morning as well. It was a fantastic day-trading day.

A.F. Thornton