The lack of immediate follow-through to the downside is proving to be a minor victory for the bulls, although this market is still far from fully recovered out of a correction. Holding below 1350 on the S&P 500 continues to be a nuisance for bears, as each of the recent morning gaps lower have been bounced well off the lows. Thus far this morning, we have a mixed bag in terms of breadth and leadership.
Despite JPM‘s news-driven downdraft, the rest of the tape is relatively benign. It is still tough to do much in either direction, given the indecisive candles being printed on the index daily charts this week. Merely fighting back to even every day after a vicious gap lower is not the makings of a healthy market. If I am going to get involved on the long side again next week, I would need to see the bulls deliver a few no-nonsense sessions with energetic breakouts. As I write this, I see the bulls have staged a nice turnaround this morning. Once again, follow-through to the upside is key next week, or we are back to square one again in a correction.
LOL!!!! The picture and analogy to the JPMorgan hype and markets shrugged off reaction = priceless!!