Even though the S&P 500 has experienced a series of negative days, no increase in new lows suggests breadth isn't significantly weakening.
One of the weakest sectors post-election has been the SPDR Materials ETF $XLB, which marked its ninth straight down day today.
The last time we saw such a streak of consecutive losses was during the middle of the previous bear market in 2022.
What makes this particularly significant now is that it’s occurring right at a key level of former highs.
If the bulls want to maintain control, they’ll need to defend this level of former resistance-turned-support.
As long as it holds and no new lows emerge, I’ll treat this losing streak as part of a corrective wave. We’re likely nearing a bounce as this pullback comes to an end.
