Yesterday, I noted that the S&P 500 has a clear Head and Shoulders pattern. As a result of this, the bears were convinced that a top was in.Unfortunately for them, investing is rarely easy or obvious. And everyone and their mother saw that pattern forming. Thus, the odds of it actually working out in their favor were slim.(Click on image to enlarge)Sure enough, stocks exploded higher yesterday. And by the look of things, the S&P 500 will retest its former highs if not establish new all-time highs shortly.High yield credit typically leads stocks. It is roaring higher after putting in a series of higher highs and higher lows. Based on this alone, the S&P 500 should be over 6,000 already.(Click on image to enlarge)Indeed, Senior Loans, which also lead equities are already at new all-time highs. This is NOT bearish. If anything it indicates the financial system is in an aggressive risk on framework.(Click on image to enlarge)Put simply, the pullback of the last two weeks was a MAJOR “buy the dip” opportunity. We had our clients ready to profit from it with specific downside targets at which to buy multiple new trades.Come join us!To start receiving these kinds of actionable insights, join 56,000 readers in over 56 countries in receiving our daily market alert every weekday before the markets open (9:30AM EST).
