It will come as no surprise that the US equity market this week has been bought on every dip but a glance at the following chart must leave one asking the question - who (or what) is buying? The huge volumes that the market has seen when selling occurs dwarves the miniscule (mostly after-hours) volume that occurs during the ramps. Of course, the slow drift higher is evident also - as $85bn a month spills out day after day. Meanwhile Treasury bonds have handily outperformed since the 3/15 Cyprus headlines hit - 10Y up 1.25% against unchanged for the S&P 500.
The lower pane shows volume - adjusted for average (so green is above average and red is below average)... the dip-buying pattern is clear but who is buying the dip apart from the algos (who use many small orders to tickle around the bid-offer stack)
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as Bonds have handily outperformed but stocks don't care...
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Charts: Bloomberg