Month-End Upward Bias In Full Force
The month-end upward bias I mentioned on Monday has been in full force the past two days. My only concern at this point is that yesterday saw unusual behavior with IWM rising significantly while SPLV (the S&P 500 Low Volatility ETF) dropped for the day. As we have discussed before, SPLV is made up of the 100 lowest volatility companies found in the S&P 500. Many are the bluest of blue chip companies and this is where the big money flows into.
A one-day divergence doesn’t mean much but it should be watched because this was the same behavior seen in July ahead of the pullback. Outside of that, the bull market marches on.