A Big Catch Still May Mean Big Risk

The interesting aspect about today's abrupt and sizable rally to counter Friday's sharp sell-off is the likely finished product on the S&P 500 Index daily. I will follow-up on this point in detail for Members in the full video tonight. 

However, there is little doubt that we are no longer seeing the quiet, boring sessions on the indices which were on full display in the middle-to-late portion of the summer trading season. 

With wild price swings typically come higher risks. But, then again, against the backdrop of daily Central Banking rhetoric, we have also seen tons of V-shaped rallies to new highs in recent years--Too many to name, in fact. 

To zoom in a bit, the hourly chart of the SPY, below, shows price peeking its head just above prior support from just before Labor Day, around $216.25. Bulls were impressive is immediately reclaiming $215 today. 

But $216.25, denoted by the light blue line, looks to be the bigger level for them to remount in order to add credence to the notion of yet another V-shape in play. If bears can actually muster the courage to roll us back over from here, it would likely set up a more textbook short entry.