Bad News is Bad for the Market, but Good for Short-Term Bears

For the last year when the market had bad news it would shake it off and resume the upside grind.  This is an attribute of a solid bull market. But this month, the market is not holding up as well.

After earnings disappointments the market is in the control of the short-term bears. If the S&P 500 cannot fill the pull back gap and close above $205 in short order, the bears may become more emboldened to challenge $200.

I also cannot make sense of the flight to investment grade bonds. This just highlights the lack of conviction in the market right now.

Have a great trading day!