Here's the oversold rally we have been expecting. It happens whenever we get so negative and the selling too intense.
Of course there's always some cause we didn't count on, this time that Fed Chairman Jay Powell saying he is monitoring rates and recognizes that he might have to take action if the trade wars knock down economic activity.
So those hedge fund managers who are short have no choice but to cover ahead of the Friday employment number. That's because it will absolutely be a catalyst for the Fed to take action if the numbers are weak and I think there is a good chance they will be.
The oscillator hit took out minus five yesterday. That's the tinder. Now we just need a match.