Market Shrugs Off Apple
Good Morning.
As was mentioned yesterday, the probabilities of a short-term rally were high due to the oversold conditions along with the month end upward bias. It was good to also see the market shrugging off Apple’s earnings.
The key now is the follow through. Normal bull markets follow through from days like yesterday. Bear markets briefly rally and then sell-off again. With the bull market nearly 5 years long it’s going to remain at inflection points on nearly every pullback and therefore the markets behavior will be telling over the next few days.
A rally means the bull is in place. A sell-off combined with the higher volatility this month would be a sign that a transition is occurring.