On Tuesday investors were at odds over whether the market was on the edge of a greater sell-off, or if the weakness was just about over.
Bulls pointed to the afternoon rebound in the S&P.
Although stocks pared gains early in the session, into the close the S&P bounced and by 4p ET closed near its highs. “That kind of action is outstanding,” says trader Guy Adami.
However, bears are not without ammo.
Looking at the market action over the entire month, the S&P fell 1.4 percent, its worst month since August. Adding to the negative side of the argument, a Reuters poll showed investors are the most bearish they have been since the third quarter of last year.
Considering the conflicting signs, should you position for more selling or is the weakness mostly done?
Instant Insights with the Fast Money traders
Trader Tim Seymour’s done some analysis; you see his charts below. And what they show he calls “a little eerie.” Trends in the S&P this year almost mirror the same trends from last year. It’s almost as if the market’s “following last year’s script,” he says.