The Gilmo Report

May 4, 2022

May 4, 2022 6:55 pm ET

Monday brought a typical undercut & rally move in the S&P 500 as it broke out to new lows early in the day. That move reversed and the index pushed back above the 4114.65 reference low of February 24th and closed above it. That triggered a natural oversold rally ahead of today’s big Fed policy announcement, and then the fireworks began.

By the close, the S&P had posted a 2.99% move on slightly higher volume. Resistance lies at the 20-dema, but I would not be surprised to see this rally carry at least as far as the 50-day line or the 200-day line. In my view, the proverbial Project Zimbabwe may be in force here, so I am not willing to stand in front of this train. Better to have bought a ticket today and boarded the beast.

 

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