The SPX slid under its 50-day moving average and found support at the round 1,100 mark. However, price snapped back quickly at that point and we are currently running in range-day fashion with Up and Down Volume just about evenly matched, Cumulative Tick running sideways, and the VIX flattening out just under 23. Feels like more than a 3.5% correction though, doesn’t it! Speaks to how rare these 50-dma visits have been during this rally. Short-term, we are oversold — Monday should tell us a lot about just how broken this market really is. For now I have to give the market the benefit of the doubt and add to long exposure.
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