Market Call: Back Above 3666, BBR Under 1.00

On Tuesday, the S&P 500 fell below the June 16 low of 3666 to 3647. Today, it bounced  back above that devilish number to 3719. The good news was that a major central bank was forced to pivot by the Bond Vigilantes. On Monday and Tuesday, the foreign exchange value of the British pound and bond prices crashed, sending US bond yields soaring and stocks falling. Today, the Bank of England suspended its quantitative tightening plan and announced plans to buy long-term bonds instead. Bonds and stock prices rallied.

Sentiment remained very bearish over the past week. The Bull/Bear Ratio dropped for the second week  below 1.00 to 0.74 (the lowest since the June 21 week’s 0.60). That's bullish from a contrarian perspective.