It was definitely a positive day for the bulls, but it was not the sort of vigorous recovery that suggests buyers were scrambling to add long exposure. It was mostly just a pretty routine oversold bounce into resistance.
Small caps outperformed and closed strong, but the major indices drifted around most of the day and closed below their morning highs. In strong markets we will generally see a strong finish as market players anticipate follow through. That was not the case today.
In view of the technical picture, it makes sense that the S&P 500 would struggle to make it through 1300 and the 50-day simple moving average at 1303. We need a better base of support before we can mount a better attack on significant resistance like that. There are still stuck bulls and opportunistic bears looking to sell into strength.
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