The market looked like it was headed for a spin-out on Thursday as the Dow quickly broke 140 points to the downside early in the day. But as has been the case with intraday sell-offs over the past couple of weeks, the indexes rallied to recover most of their losses by the close.
In the midst of all the intraday gyrations, the NASDAQ Composite Index remains in what can only be described as a robust uptrend. Since gapping up to all-time highs in the latter part of April, the NASDAQ hasn’t closed below the 10-day line even once. And while a pullback to the 20-day moving average might look scary, it would still be normal within the context of the prior, steep uptrend.
The S&P 500 Index remains in a position where a breakout to new highs cannot be ruled out, despite all the trepidation over the low VIX and the “end of the Trump Rally.” If the market likes to climb a Wall of Worry, then I suppose these two known crowd facts might be viewed as just two more bricks to mortar into the wall. As always, it all boils down to what individual stocks are doing, and nothing else!
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