Turnaround Tuesday on March 10, Marks A Turning Point
It was a wild day on March 10, but turnaround Tuesday lived up it's billing, with the bulls mounting an epic comeback.

Turnaround Tuesday on March 10, Marks A Turning Point

March 10, 2020

Stocks: None

Marco: SPY, Spreads, Dollar

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Well, if you didn’t listen to the audio file from this morning, I’m sorry. I wish you had, particularly starting around the 5-minute mark. If you did listen, then you know what I am talking about.

Turnaround Tuesday

That was pretty much a perfect textbook day. I couldn’t have drawn it out any better. If today wasn’t the bottom, then we have much bigger problems on our hands.

The big gap open, the big sell-off, retesting yesterday’s lows, the hold and that late end of day surge. Wow. Perfect. Even better, we took out resistance at 2,855 after failing two times earlier in the day to close at the day’s high at 2,882.

spx, spy

Now 2,855 once again become support, and even better, we have another significant support level down around 2,735.

I think this means that we ultimately look to fill that gap up to 2,986. I am just putting a caution zone in at 2,900, in case.

Looking for Confirmation

So how do we confirm today’s rally as an official turnaround Tuesday, bottom in, day? Well, that is pretty easy gap lower tomorrow fall to around 2,855, and the rest of the day fill the gap up and push above today’s close. It wouuld reverses the current trend, which has been gap higher and trade lower all day.

The good news the RSI is starting to trend higher too.

spx, sp500

Spreads

And, like I have been saying, the equity market is merely following the spreads on bonds, and those rose sharply today too. The USDE10YR is on the cusp of breaking the downtrend, and that is a big deal. It could mean that 10-year rises back to over 1%.

us10y-de10y spread

Dollar Index (DXY)

The dollar index had a great day, too, also rising sharply. Notice any patterns.

dollar

Anyway, I’m tired, and I’m taking the rest of the day off. I think I deserve this one.

-Mike

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