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Momo Crowd Buys The Dip

Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).

Note the following:

  • In the Morning Capsule, we wrote:

In the U.S. stock futures first fell, and then the momo crowd aggressively bought the dip.  Clearly, the momo crowd has no comprehension of the earthquake that just occurred.

  • The earthquake was news that Bank of Japan is abandoning its present yield curve control.  For details, please see the Morning Capsule.