To put the intraday sharp drop lower we saw a few hours ago, you can see on the 10-minute SPY chart below that it did not creep into gap-fill territory from yesterday morning. Overall, we are still consolidating the huge rally fairly well. The day after a huge rally is generally expected to be a frustrating market for daytraders. Also of note is the relative outperformance by the small caps here.
A strong close today, while not necessary, would bode rather well for bulls looking for changes in market character. All in all, though, watch to see whether that gap higher from Monday morning holds.
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