Wacky day today. Market futures were down close to 150 points overnight. Recovered all of that before the market opened today. Than the market sells off hard where at its lows it was down 180 points. Than it reverses completely finishing positive on the day. Crazy market. There was no reason for the market to rally. Manufacturing data was very dispointing. First glimpse of May data and it didn't look pretty. China was down over 5% last night as most of Asia was punished. Tehcnically we broke 1122 to 1125 which seemed to set us up to go down to 1100 to 1110 at least. Homebuilder sentiment came out and surprised to the upside but that doesn't seem like it would move the market as the market has ignored that data point for months (at least when it surprised to the upside)
Euro stabilized and rallied from its lows as well but still sitting under 1.24 currently.
All in all in the short term today was pretty bullish. Goig up to test 1150 to 1180 again isn't out the of the question. Such a big reversal will add momentum. In general this is still just chopping around working around the oversold conditions from two weeks ago. I think the bears completely control things unless we break 1180. Like I said though a rally for a day or two seems likely at this point.