The market’s shown more ebb and flow lately, and depending upon how far it ebbs, especially on a day like today, you’ll get a good idea of whether or not the bulls can keep it flowing.
The Dow dropped more than 100 points earlier today on surprisingly weak manufacturing data. But, as has been evident throughout this ferocious rally, stocks slowly drifted off their intraday lows and turned positive, suggesting investors are maintaining the “buy on the dip” mentality.
The action isn’t surprising, especially since this has been a recurring theme throughout the rally. But whether the rebound today is sustainable into the close will be the true test.
It seem like only a matter of time before the bulls will run out of steam and won’t be able to keep erasing intraday losses. The early dip today was also larger than usual compared to other dips over the last few months. And the further stocks keep falling at the open, the harder it’ll ultimately be to recover.