You Didn't Go to Hell, You Went to Purgatory, My Friend!

Bulls may think they have gone to stock market "Hell" since October, but a knowledge of market history beyond the last five years or so dictates that this type of price action is much more consistent with "Purgatory" than anything else.

On the one hand, rallies are being met with selling on a daily basis, as the vast array of opening gaps higher have been soundly faded at various points throughout the trading session. Just this morning's push higher, for example, was immediately met with small cap, regional bank, and various energy sector weakness to take a deep bite out of what looked to be another promising relief rally attempt during a seasonally bullish time of year. 

On the other hand, though, the low end of a multi-month, sloppy corrective range is still holding on the S&P 500 Index. 2,630 has been a key spot for us, as Members have used that level to define risk and remove the emotional swings of the moment which are so prevalent in these types of markets. As long as that level keeps holding, bulls have to adapt to Purgatory by keeping swing trades light and tight, albeit with select opportunities still available. 

Stock market "Hell" for bulls would likely entail a decisive breach of 2,630 which fails to immediately reverse back higher, alongside the potential new software leaders like TTD TWLO breaking down on heavy sell volume and wrecking otherwise promising charts. That has not happened yet. But the longer bulls decide to lollygag down here, the more likely it becomes that the temperature will rapidly rise on them and become exceedingly uncomfortable.