There is a saying: If you are not following the market, you are missing some amazing drama.
Today was one such drama day. It was a sell off day right from the word go. Here's how scary it was - S&P500 was down 35 points from the opening level
Here's how S&P 500 finally closed
Bulls happy - How?
What market does during the day and how it closes matters much more.
First US market sold off and broke every possible small support it encountered during the day but then it did a pretty impressive bounce back right from the place where it was expected...i.e. 50 dma. See it for yourself.
In Bull market, traders buy the dips. That's what preceisly bulls did in second half of the trading day. This is S&P500 futures intra-day chart
As you can see in the chart above - there was a recovery of 16 points from the lows and there was no nervousness. It was a pretty gradual recovery which is a good sign and that's why we can conclude that bulls would have gone home happy. See how fear index VIX collapsed
Fear & panic was widespread and lasted for.....60 minutes... pic.twitter.com/f8pI2zv1Et
— Sven Henrich (@NorthmanTrader) June 29, 2017
Also tomorrow is the last trading day for first half of calendar year and there is hope that markets will hold the gains. So, a scary day for bulls finally ended well. Bulls showed up when it mattered.
Very true. pic.twitter.com/GXUDidOObD
— Motivational Quotes (@DavidRoads) June 29, 2017
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers