The S&P 500 added 0.8% Thursday after Wednesday’s bearish intraday reversal turned into a lot of nothing.
One day’s down becomes the next day’s up, and so far, the market doesn’t seem interested in doing anything meaningful. November gave us a huge rebound; now it is time to rest.
That said, holding all of the recent gains confirms these levels are real and the index is not teetering on the edge of a collapse.
If stocks were fragile and overbought, one of these waves of selling would have kept going. Instead, most owners shrugged and kept holding.
Stocks don’t have the strength to keep charging higher, but the longer we hold these levels, the more real they become.
Something that refuses to go down will eventually go up. At this point, bears are losing the argument, and it will likely get worse for them if they continue fighting this market.
If the November rebound was going to fail, it would have happened by now.
Bigger trading opportunities are coming our way, but it will take time. Stay patient and resist the temptation to overreact to this intraday chop.