Buying any and all (rare) dips has been the mantra the past 2.5 months. Dip buyers have been rewarded without fail. However we just had this pattern yesterday ...big morning selloff followed by dip buyer bounce. Rarely do two days repeat back to back in identical fashion. So as the SP500 hurtles back toward the 13 day moving average one wonders if it is just going to be "that easy" today to continue the mindless robotic buying.
If there is ANY historical precedent left in this market, I'd declare the chances of a bounce today are far worse than yesterday.
Note: 13 day moving average at 1203. This has only been broken intraday three times in 2.5 months and that was briefly, and not a break on the close - only intraday.
(Edit: Looking farther out, the 200 week simple moving average is now down to 1192. For bears to sustain any chance of a real selloff, the market needs to break back below that very important level. Otherwise we are back to normal POMOrrow)
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