Marginal new correction lows were printed by the S&P 500 during this morning’s gap lower. However, the relatively sharp recovery intraday had led to a grinding session with not much going on since.
To be sure, there is always risk of a further capitulatory wipeout during a correction. Nonetheless, the VIX has been sinking this week and wagering on market crashes tends to be a sucker’s bet over the long run.
We have been treading lightly inside 12631, despite the longer-term bull thesis into next year. Simply put, the correction is over when it is over.
Keep an eye on the continued bullish divergence in the semiconductors. I do not see many pointing this out, or at least placing much significance to it.
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