With price closing below the rising 200-day moving average on the S&P 500 Index for a full week now, it sure seems that bulls had better show up sooner than later to defend the longer-term trend. The rally from June through September has given back more than half its gains, yet it feels much worse than that, as if the whole rally has been lost.
If we had seen a massive gap lower this morning, the strategy would have been to step in and buy some long inventory after the sell-off we have already seen. Instead, we are seeing that familiar mild pop-and-fade action, slowly drifting lower at the time of this writing. The VIX remains relatively subdued for a bull market correction as well, under 20.
Moreover, the transports completely erased the progress they had been making of late, continuing with sloppy daily chart price action.
In addition to the (potentially bullish) divergence in the VIX, though bears will clearly argue the market is complacent here and fear will perk up imminently, the semiconductors have yet to make new correction lows since October 23rd. Further weakness from here puts that whole notion in jeopardy, though.
Cant argue with any of those comments.
thanks…trying to be objective