Buying the dip continues to maintain its relevance as every sell-off is met with buying interest, thereby preventing the market from seeing significant multi-day sell-offs. Volume today was much less compared to the huge spike we saw yesterday. While we are still not all that far off of the highs of late, I don’t expect us to challenge them anytime soon – instead I believe it is realistic that we see the market consolidate or tread somewhat lower. The market is extremely oversold, and another substantial leg-up in the market from current levels just doesn’t seem to be sustainable. Nonetheless, today’s market action was a great response by the bulls to yesterday’s heavy selling.

Here’s the Nasdaq and S&P charts…