No Buying Pressure... (More Bearishness Ahead)

What you just saw was an intraday bull-trap. We may soon see the VIX hit 30.

Good afternoon:

The selling continued today… but it took traders on a roundtrip and an intraday headfake. This is the S&P 500 today…

We hit that third standard deviation bank to start the day on the downside, and then the markets just burned higher. This is the type of event that gets investors excited about trying to catch a falling knife.

Of course, the last 30 minutes were ugly. As I’ve said time and time again, markets do not go down in a straight line. Funds were dumping when we had that reversal today - and used that pop to sell even more stocks.

So how bad is this situation?

Well… it’s the highest selling pressure that we’ve seen since the onset of Quantitative Tightening in late 2021.

But buying pressure?

The lowest since the GILT Crisis. There’s no frantic bidding… and the only stock with actual momentum as we define it… is…

Warner Brothers Discovery (WBD).

You got me on that one…

Conversely, 203 stocks are down 5% on the month and meet our beta standards. The stock that took the…