We're now 4% off the highs in the SPX. That's about the average pullback in this bull market. Mental alarm clocks are going off like crazy among market participants. They want to buy this dip and play the reversal. This is conditioning at it's best.
I think many understand the implications of the big picture starting to take form and are frightened, but they are so used to buying the dip that it creates that mental conflict to buy dips and double down on losers. It's easy to forget the last two times QE ended the market was bid-less.
As somebody who is short, this is exactly what I want to see. The bulls couldn't even wait to let SPX drop to 1900 in the first place. They really want to fight this thing every step of the way.
From my perch, I don't know what the hell they are trying to buy outside of energy. More growth names are breaking down and there is just a lack of ideas and setups in general.
We're playing for broad market bounces. The clear level that has all of our attention is SPX 1900. That's still a percent away.
Trade 'em well!
No comments:
Post a Comment