The sell-off looks really good at first, when it breaks the 5-day and 10-day moving averages.
Then it takes out the 20-day moving average and it looks like this time is a bit different.
But then the afternoon rolls around…
From there, the only thing the market can do is continue pushing higher, and that is exactly what it did.
It is an annoying exercise because these massive sell-offs seek to take out as many stop-losses as possible before reversing course.
If you look at the last six major attempts to sell this market off, you’ll see some notable similarities.
Check it out:
