The S&P 500 finished nicely higher yesterday.
A midday step-back tried to unwind some of these gains, but rather than join in the selling, most owners shrugged and prices quickly bounced back near the intraday highs.
If last week’s rebound was built on a pile of sand, the lunchtime swoon was more than enough to trigger a larger wave of follow-on selling. But so far most owners are comfortable holding for higher prices, meaning there is some substance to these prices.
We’ve been waiting a while for the back half of September and now that it’s finally here, we can start taking the market’s price action more seriously. That’s because institutional money managers are back at work and getting ready for the final months of 2022.
While we shouldn’t expect a dramatic change in the market’s behavior overnight, we can put more faith in any of the signals it gives us. And so far, it seems like big money is fairly comfortable with prices at these levels since they haven’t hit the sell button yet.
Maybe this changes today or next week, but so far, things look pretty good.
Hold the bounce, lift stops, and see what happens. There isn’t much else to do here.
Hold with stops spread across the mid-4,000’s. Momentum is still at our back and so far most owners are resisting the urge to sell.