Bulls Getting Caught In Whirlwind | investing.com – Investing.com

bulls investing whirlwind yesterday
Middle East
  • Date: 11-May-2021
  • Source: Investing.com
  • Sector: Oil & Gas
  • Country: Middle East
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Bulls Getting Caught In Whirlwind | investing.com – Investing.com

A seemingly uneventful and tight range day on the gave way to extraordinary selling once the 4,220 intraday support broke. The bulls obviously have quite some damage to repair before thinking about taking on new highs. Prices have moved back into a prolonged consolidation, in what isn't a true breakdown though yet.

Neither the small caps, nor the emerging markets, let alone the S&P 500 fell on sharply rising volume, which speaks in favor of a bad day, chiefly driven by tech and weak credit markets. Look at market breadth – new highs and new lows stunningly rose yesterday in spite of the 500-strong index losing quite a few dozen points.

It would be classic risk-off positioning, if only the defensives as a group did a lot better. But it could have been worse had commodities joined in the melee. They didn't, and they are, thus, the dog that didn't bark, detracting credibility from yesterday's stock market plunge (unless they catch up next, that is).

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