The markets sold sharply on Monday. Global worries about growth, energy, banks all on the mind of investors. Tuesday wrote a totally different story. It all started with Asia overnight. The Nikkei 225, Hang Seng index and Shanghai all rallied higher as China pumped $700 billion yuan into its economy. In addition, oil held strong following a significant rally off the lows in recent days and Europe also popped higher in early trading. Deutsche Bank (DE:DBKGn) (NYSE:DB), the most important European bank rallied over 4% Tuesday. The S&P 500 took out the technical resistance of 1950 -- Friday's pivot high. This market is in squeeze mode. Too many shorts thought the market would collapse off the 1950 level.
If you learn one thing, always remember that when too many 'pros' are saying something, the market will do the opposite.
The S&P 500 is heading to 2005 as a target. That means there are almost another 30 points higher before significant resistance. It is even possible to see 2020 on the S&P. Note the (N:SPY) below, which shows the target perfectly.