Stocks enjoyed a 7-month winning streak with the S&P 500 rising 26% through July before it finally took a break, declining by some 5%, over the next five weeks.
During this time, the bears seemed to be taking charge, as new low/new high readings showed weakness. As you will see on the chart, the SPDR S&P 500 ETF Trust (SPY) chart broke major support and slipped below the 50-day moving average. At which point sentiment was shifting increasingly towards the conclusion that at least a 10% correction was in the works.
Then, just as Lucy always snatches the ball from Charlie Brown, the bulls rushed and it took just 13 days to trade up to new all-time-highs.
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