SentimentTrader posted the following image showing the near-term action after the SPY surged more than 1% to fresh mutiyear highs on the biggest volume in 2 months (which is what we saw yesterday).
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SentimentTrader posted the following image showing the near-term action after the SPY surged more than 1% to fresh mutiyear highs on the biggest volume in 2 months (which is what we saw yesterday).
So far, the tendency for the market to consolidate after the sort of vigorous surge that we saw last week continues. However, as we often say here at Shark HQ, market players are creatures of habit, and the undeniable habit that has served them so well for so long is buying dips.
As such, it's interesting to note that yesterday, the S&P 500 dipped below its 10-day moving average for the first time in 21 days. Since 1995, there have been 55 instances where the S&P 500 closed below its 10dma for the first time in at least 15 sessions, but above its 200dma. Of those 55 occurrences, the index has closed higher at some point over the next week an impressive 89% of the time.
The market overall remains extended, but don't expect the dip buyers to give up easily.