MBS POST CLOSE: Maybe this is the "base camp" after all...

Let's not get too carried away as recent events have proven nothing if not volatile, but I think the fact that markets immediately rallied to their closing levels yesterday, and that they retested those levels as a floor several times before 5pm, and that we had an entire POINT of buying today, and that that point took us up exactly to 2003's highs, and that we came ALL THE WAY back down to those same closing levels from 3pm yesterday, and that we tested them numerous times as a floor, and that not only the 3pm close, but also the 5pm "going out" levels were the same, is, in a word, significant.

Whether this is the "base camp" mentioned in the previous post, or not, remains to be seen.  But considering we've made massive gains recently, we're constantly looking for a plateau from which to carve out new highs.  Given the extremely frequent retests of 102-04 in 5.0's yesterday and today (in other words, once we went over that level, we never dropped below despite approaching it numerous times which can be seen as the red line bounces off the teal line) it's possible that this is "base camp."

Furthermore, the fact that the "expedition" made it so far up the mountain today may be viewed as them doing some "scouting" so that we have an idea of where the next peak lies.  To drop the metaphor, today's highs are the next big challenge, either to be broken or to serve as the peak of our price levels.