It's the traders behaviour that drives the stock Market. In Bull market - they look for buying Opportunity and in Bear market - they look for Selling Opportunity.
In Bull market, the best Opportunity comes - When things are down and Out. That's why traders love Bad News because it gives them Opportunity to Buy. Here's S&P500 chart and see for yourself now every bad news like Brexit (June 2016); Trump Victory (Nov 2016); Trump Legislative confusion (April 2017) and North Korea Tension (August 2017) have turned out to be excellent buying Opportunity.
Just to Illustrate how strong the market has been - this is how S&P500 has rallied since North Korea conflict bottom in August 2017
Conclusion: Trends Persist and hence keep buying the dips in hope that it will continue to be rewarding exercise.
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