Negative Reversals During the Current Rally

Negative reversals are never fun for the bulls, but by themselves they aren't a signal that the rally has reached the end of its rope either.  As shown below, today's negative reversal is the fourth time since the March 9th low that the S&P 500 traded up more than 1% from the open and then reversed lower to trade down more than 1% from the prior day's close.  As shown, none of these periods marked the beginning of the end.  In fact, on two of the four days (3/13 and 3/25), the S&P 500 actually reversed again to finish the day in positive territory.

 

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Comments

[ndmaster]

yeah, but none of them occurred at a 3 month high in the index. we are now, and this indicates a very stretched market needs a break.