The Fireworks Are Just Getting Started

After yesterday morning's wild intraday volatility eventually culminated with an upside reversal, bulls are pushing higher yet today for a broad market oversold rally, with beaten-down controversial stocks like LL and VRX both keeping shorts honest with sharp squeezes higher. Note that this is all happening as we build towards the much-ballyhooed FOMC decision tomorrow afternoon, among plenty of other Fed goodies in store. After that, more fireworks are to be expected with Quad Witching OPEX on Friday, on top of a flurry of important macro data along the way. 

On the Dow Jones Industrial Average daily chart, below, note the bounce yesterday afternoon and this morning takes price back up to a declining 200-day simple moving average. I expect this are to be the scene of the first major test of bulls' strength, especially as the VXX (VIX ETF) retraces its breakout dating back to last Friday. 

In addition, Members have a close eye on natural gas, as we discuss the dynamics in play as that market works through a likely "washout" phase.