Horrible News + Flat/Slightly Down Market = Up From Here
This is the second day in the last week where horrible news might have led you to expect a big selloff that hasn’t materialized.
Last Friday, a -63,000 jobs number really didn’t lead to too big of a selloff.
And while we gapped down at the open this morning and the VIX spiked, the indexes bounced almost immediately and we are flat to slightly down an hour in.
Check out the financials: the stocks are bouncing nicely (XLF Intraday Chart).
To me this says that we have demand at these levels. I think this is essentially a retest of the January lows and we go higher from here short term.