The market is arguably in a consolidation mode....at least according to the way the VIX is behaving.
Friday's buy the dip action is a stark example of how traditional risk management modalities are not present in the current market. Trying to understand why is not an easy task.
Clearly there is considerable anticipation of the new Trump tax plan due next week but there also is evidence that potential market gains are being seriously hedged. With any rate hike likely delayed until June bonds are showing some traction in spite on the low VIX and the recent surge in the utilizes (XLU), typically seen as a risk hedge, gives support to the increasing Risk Off paradigm.
Trader's Outlook is neutral to bearish.