Market Shows A Pulse
At about 2:15pm EST, the bulls made a stand and pushed the S&P up 29 points (2.10%) in the last hour and 45 minutes. Volume on the popular stocks and ETFs that I looked at all picked up as the market turned around and rallied (SPY 1 Day Chart).
You can always count on this kind of thing because “the market” is not a uniform monolith. It is composed of millions of institutional and individual investors, many of which have views completely the opposite of one another.
When prices come down the way they have, people who view things through a different lens, for instance investors who don’t try to time the market and are long term investors or investors who don’t believe a recession is coming, see attractive opportunities and step in and buy. Then there are short term traders who watch for this kind of thing and pile in, accentuating the move. And I’m sure there are other dynamics at play as well.
Anyways, the question now is how much more we’re going to get. I can see another day or two but not much more. I think more and more people are changing their views about the economy or at least experiencing anxiety and doubt and that will mean selling pressure in rallies.