Buying on the dip seems out of style in the U.S. stock market, as traders are typically dumping stocks right before the close, according to data from Bespoke Investment Group.
"The YTD [year-to-date] pattern has been a very big spike at the open towards highs of the day between 10:00 and 11:00 AM," Bespoke said in a note Friday. "There are bouts of volatility back and forth, but the biggest swing lower comes in at the end of day trade right before the close."
Source: Bespoke Investment Group
"The YTD intraday performance chart suggests that the most reactive buyers are piling in early while the smart money is selling into the close," Bespoke said.
This trend was confirmed again Tuesday, as the major averages plummeted to session lows in the final hour of trading.
Dow intraday Tuesday