S&P 500 2888,68 +41,08.
Heavy short covering characterized Friday’s trading session, as measured by our buying/selling index and our capitulation index. Are algoritms models at work? It looked like. Systematic models are close to turn up after last week’s selloff that didn’t took out the previous lows around 2800, a positive divergence. It seems that the selling pressure has been exhausted, at least for the short term, last Wednesday with our indicators recording extreme readings. We still stick to our scenario of a large trading range developping over the next few weeks.