Dips are Fleeting

You can tell the strength of the market by seeing how much time it spends near the highs, how much time it spends near the lows.  The SPX is a textbook example of a market that spends most of its time near the highs, making those occasional selloffs look like crashes, because traders aren't used to the SPX going down and staying down.  Its like trying to keep a beach ball underwater!  

You can't keep a strong market down for long, and that dip from Thursday pre-market during European trading hours was like red meat to the bulls, who ate it up ravenously.  The SPX basically shot out of a cannon on that gap down open.  You see things like that and you know that the next time there is a dip, you can't hesitate, you have to be ready to act, know your levels where you want to get long and then buy when it gets there.  

I managed to get a partial long position in the premarket on Thursday, but wasn't able to get full size as I was waiting for the cash market to open to see if there would be some options hedge sellers coming in to sell the SPX, to add more.  It was the opposite. 

I still think there is another dip waiting within the coming days, with Jackson Hole coming up next Friday and with traders cautious heading into September.  Get your shopping lists ready, this market won't give you much time to get long when it gets down to low risk buy levels.