Over the past 10 months, there have been numerous times where stocks and the S&P 500 index finally start to take a dip.    And then, out of nowhere, the selling stops…on a dime without any substantial fundamental or technical reason and we have a sharp reversal to new highs.   I hate the line “don’t try to catch a falling knife” but in this case, knives are in freefall and the majority of times, they have been caught without a problem.   It’s not natural.  It’s like watching a ball drop from the ceiling only to stop after 3 feet in mid-air and then float rapidly back to the ceiling.   It’s not natural, but it keeps happening.  Bulls would probably see this as some evidence of their superior strength or mention some bullshit like “normal profit taking” or “buying on the dips” or “bargain hunting” or “squeezing the shorts” or  “all that cash on the sidelines” coming in from those that have “missed the train.”   Come up with whatever explanation you want.  I look at more technicals than anyone else and I am telling you that there is no good explanation for this phenomenon.   To me, it looks like a bunch of investors who try to dump their overpriced crap from time to time and quickly see that it’s not going to work…the selling stops and prices reinflate.   Since March, it’s worked for the index and it’s worked for thousands of stocks.   Sooner or later, the cessation of selling on the dips will not happen and I hope you are able to recognize it.