It appeared that nobody wanted to sell into the sizable gap down this morning. That emboldened the dip buyers to load up. Sellers never really showed up. Breadth was -74% early in the day, but ended up about even. New highs dropped down to 48. New lows picked up a bit to 39, but that was lower then the 80 on 8/22. SPX opened below the 50 SMA, but did not stay there long. Most indexes closed slightly green.
The futures tested lower, but quickly came back above the 3/21 low this morning. That set the table for the bulls to keep nibbling on stocks all day.
The counts did not change much today.
The market still looks like it wants to bounce. The gap down did not deter the dip buyers. While the VIX was over 14 early in the day it collapsed to close down over 3.5% at 12.5. That is already low and the market hasn't even bounced yet. I heard somebody on TV claiming this pullback is just like brexit or the election low. Both of those incidents saw the VIX well over 20. This time is different. The market may have trouble getting much past the highs. First things first though. Lets see if the bulls do indeed get a bounce going.
Bob
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