They Can Almost Smell It
Another immediate smackdown of some opening strength on the indices surely has to be giving bears hope that this particular reversal is the start of something more meaningful. After all, it is the growing conventional wisdom that the market is likely into the inauguration of Donald J. Trump later this month, and then will perhaps sell off only after that event into the seasonally weak February portion of the year.
Nonetheless, the market has the final say. And thus far bears have had some issues holding us lower for anything more than a few hours, if that.
Beyond that, some bread-and-butter leaders are waking up again. AAPL GOOGL PCLN, for example, are all acting as contructively as the have un a while. And AMZN FB are roaring back impressively this week from corrective daily chart patterns.
Indeed, that leadership is enabling the Nasdaq to as a whole to rally back as I write this, which could flip the script on the contrarian bears and see the rally-into-Trump thesis come to fruition. I suspect the outcome of that mind game rests on the price action of the aforementioned leaders, since if AAPL AMZN FB GOOGL PCLN, as well as NFLX TSLA, all continue to act well then bears may be post-poning their plans until February.