The first thing bears wanted to see after yesterday’s sell-off was some immediate downside follow-through to set a price correction in motion. Obviously, that did not happen with this morning’s gap higher. However, a midday or late-day fade may very well accomplish a similar goal for bears. As I write this, the consumer staples in the XLP ETF and healthcare stocks are actually leading, though the small caps in the Russell are acting well. The Nasdaq is trying to stage a bounce off its rising 20-day moving average, too. And that is definitely a reference point I would be observing.
As for the S&P 500, we are back up to 1509, a level which marked short-term resistance in mid-January. Above there, and the bear case for a correction likely gets put on hold, yet again.
Two small caps to watch in the health food space on the long side if they can get some more volume coming in: BDBD BNNY.
I read and watch daily Chess and I rarely say thank you, so Thanks for your posts.
Thank you, OldDix. I appreciate that.