The market ended a very choppy week on the upside following a sudden mid-day sell-off on Thursday after the Biden Administration announced a proposal to raise the capital gains tax rate to as high as 43.4%. That sent the indexes reeling to the downside, but by that time most short-sale target stocks had already been coming down for over a week or so. All the major indexes showed a distribution day on Thursday followed by a lower-volume rebound on Friday.
The indexes also had a bit of a late-day rug-pull on Friday as well, with the Dow giving up about 1/3rd of its gains in the last half-hour. This just highlights the difficult market environment that investors face, giving some weight to the argument that unless you swing trade, you might as well sit tight and wait for the odds to start stacking up in your favor before getting aggressive on the long side.