SPX hit its first target.

A strong rally today across the indices. The SPX hit its first target which is 61.8% fib retracement off the recent downside swing. I anticipate a pullback first. This level should be taken out decisively by bulls to negate that downside swing. Usually, a tradeable response, a contra trade, is expected first. The second fib retracement tracks the recent upside swing. It gives objective entries for going long. An aggressive long could be initiated from 2520ish level though.

The rally has left many traders wondering whether the correction is over... There are certain things that support the bullish case. The forced selloff signs are not present. The Fed put a show today which was welcomed by the market. The big caps, like Apple, offered attractive low prices. The mutual funds will continue to buy equities as part of their portfolios.