It's Over Now... The Bears Are All Done!
Rally, Rally, Rally... Go Bulls! Of course you know I'm joking now, as I'm a bear by nature. And today certainly put a hurting on the bears. It took me totally by surprise, as the charts looked very bearish yesterday. That goes to show you that just as soon as you think you've figured it out... they change the game plan.
I honestly have no clue about tomorrow, but I'd expect a "pause" day, as that's what usually follows a big move up (or down). Since we have now clearly broken outside the falling channel from the April high, I'd say we are going up next week too.
We still have a 112.41 spy print too be filled, and if this rally is going to continue, we'll be there in no time flat. Just layoff some more people, cut back on earnings forecasts, talk bad about the economy... and we'll rally to the sky. LOL. But serious, is this the most screwed up market you have ever seen? Nothing about today was bullish... absolutely NOTHING!
It was 100% manipulated to squeeze out the shorts... and boy did it ever work! And shorts left now are broke, and homeless. I hope all you bear survived it!
Ok, on to tomorrow...
The gap up and sideway trading is a major bull flag. So, if it plays out, we should open and go higher tomorrow too. Personally though, I think we will pull back a little, to retest the falling trendline around 1080 area now. Then a bounce from there to start the next move up should occur.
This all assumes that "they" want to rally the market up higher, and aren't just tricking the bulls right now. The charts could be read either way, so I can see lot's of bullishness in them and still find some bearishness too. Basically, if the market doesn't confirm tomorrow, and sells off further then the 1080 backtest area (putting in back inside the channel), then we are still in "whipsaw" alley.
However, it's looking more and more like a new up trend should start now. With all the bearish news out there, and we still rally on it... that has too tell you that we're not likely going back down anytime soon.
But, they did leave a gap around that 1070 level that will need too be filled... eventually! Not that it's any comfort for the short term bears, but if you hold long enough we will revisit that gap and fill it.
Well, that's about all the bad news I can stand for today (at least for the bears), so I'll close in saying that I really don't know what tomorrow will bring...