⚠️The S&P 500 just completed one of the fastest oversold-to-overbought reversals since 1950:

The index moved from oversold to overbought territory in just 11 trading sessions, the 2nd fastest such reversal since 1950, surpassed only by August 1982, according to Bloomberg.

This also marks the 3rd straight week the S&P 500 has closed up 3% or more.

The last time this happened was in June 2020, September 1982, and September 1940.

Additionally, the Nasdaq 100 has now risen for 13 consecutive sessions, the longest winning streak since July 2013, a stretch exceeded only twice in the index's history.

Meanwhile, the Magnificent 7 basket has not posted a red day since March 27th, rising +19%.

WTI crude fell -12% on Thursday alone, back to its lowest level since March 11, as ceasefire optimism triggered a wave of long liquidation.

Dated Brent, the most important indicator of real-world oil market tightness, nearly erased its premium over front-month Brent futures.

This raises the question of whether the physical oil market has actually loosened, or whether the move was triggered by headlines rather than a fundamental shift in supply conditions.

Meanwhile, Bitcoin and silver prices have had a nice run-up.

With the S&P 500 now overbought, CTAs having deployed their highest-velocity buying, and options expiry heavily skewed toward calls, the market may be primed for a pullback next week.

Time will tell.

Performance this WEEK:

S&P 500 +4.5%
Nasdaq +6.8%
Russell 2000 +5.6%
Dow Jones +3.2%
US 10-year Treasury yield -8 bps
Bitcoin +6.1%
Bank Index +2.4%
VIX -9% front mth VIX futures -17%
US Dollar Index -0.5%
Gold +1.7%
Silver +6.3%
WTI Crude Oil -12%

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