Is the "buy the dip" mentality still strong out there or is everyone giving up? Need SPY to break 260 pls
remember that the algos don't just sell...they buy too, and they can buy a lot.
my understanding is that the algos work on probabilities...when they see something that increases the odds of a lower stock price.,..they short.
when they see something that increases the odds of a higher stock price...they buy.
The VIX at 25 right now is starting to tilt toward something that suggests higher stock prices. A VIX at 27 or 28 would bring a lot of algo buying.
So the point is that it's not all psychology...it's doing something before the algos get to it before you.
So if the algos buy at vix 26, you might want to buy at vix 25.
Agree with all your points but those algorithms are set each day and I have a feeling their buying power is running out. SPY just broke support at 265 and Dow is headed to -500 points on the day before 10 am. Banks are running out of money to buy and might want to gtfo