The S&P 500 ended a three-session losing skid on Wednesday, bouncing 0.9% as the index recovered most of its prior losses.
Little changed between Wednesday, Tuesday, or even last week. The market is comfortable at these highs, and few owners are interested in selling. But at the same time, those with cash are reluctant to chase prices even higher.
This draw between bulls and bears leaves us mostly treading water above 5,200 support.
Prior momentum is clearly higher, and that means all ties go to the bulls. If prices were grossly overbought and vulnerable, stocks would have tumbled by now. As long as we keep getting more of the same headlines, I don’t expect anything to change.
One bad headline can flip sentiment in an instant, and if that happens, there is a lot of air underneath us, but we need to get that bad headline first. Until then, expect this back and forth to continue, but with a little more up than down.
If this market was going to break down, it would have happened by now.