S&P 500 - September 1, 2010 - BMO

If market keeps up with futures, S&P will open with a good gap up -- right now, that would be about 1062 cash.



It is too early and things may change into the open.

In any case, a move above 1056 cash may indicate a short term uptrend.

S&P shall have to get above the gap of August 24 and hold it, preferably holding the top of the gap.

If we have had a bottom and mid-term uptrend is about to resume, price should unfold in a very impulsive manner.

A genuine enthusiasm for equities may partly (or wholly) come at the expense of the supposed safe-haven (what-the-hell-ever) trades of US treasuries. It may be a good idea to keep an eye on TLT and IEF.

I will be more interested to see how gold and gold miners perform if equities get a decent run.