Despite economic release futures pushed lower prior to the market open. Buyers jumped at the chance and pushed the market back to breakeven. The Dow was down more than 100 points just after the open, but was able to find some support at the day’s lows. Despite the move off the lows it appears many traders were already on vacation as volume dropped day over day. For the week the S&P 500 and NASDAQ were lower on the week, but losses were well contained. We have leadership albeit small, but we have seen this market rally with no volume and a lack of leadership. At the end of the day we can only trade the market we have. Stick with the process and win.
Ending the week there were more bulls than bears in the AAII survey. Given the market rise we would have guessed the number of bulls in the AAII survey would be more than 34%. Bears were just below 24% for the week. AAII Neutral respondents continue to be the majority in the survey. II survey spread between bulls and bears jumped. It seems like the average investor simply doesn’t want to take the risk whereas the professionals seem all bulled up. Who wins? NAAIM Exposure index inched lower, but still continues well below bullish norms. Once again, the narrative of the most hated market certainly continues.
Enjoy the long weekend! Trading is great, but life is meant to be enjoyed. Go out and enjoy it.
