What's it going to be, a new rally or a sell off?
I see a sell off, but Jim Cramer is now bullish. Of course I'm not being paid for my promotions (err... opinions) like he is, so I'll let you come to your own conclusions there. Regardless, the charts tell me that a sell off is coming. This rising wedge has too break soon, as nothing goes straight up... especially if there's no more stimulus money to support it.
The bears need to gap this thing down below support tomorrow morning, or the bulls are going to stage another massive murder of them. Maybe Cramer is right? He doesn't always make the wrong calls... even if he's paid too do so. He has to "save face" every now and then. Of course that little comment in his video about breaking the 500,000 mark on the job data could be his escape... should the market sell off as I expect it too, instead of rally.
I'm sticking with my call that we are going to break down from this rising wedge and head lower toward the end of the week. How low... I don't know? Again, we still have that FP of 105.39 spy that will eventually be met... the "when" part is always the toughest one to figure out.
We also have the ritual side of this, which is the fact that the Legatus Pilgrimage is over now, and the market should reverse the direction it was going into the meeting... which was UP. Let's not forget the release of the new Wallstreet movie too this week.
I'm not buying into this bullishness. I still believe the market is 95%-100% done with this rally. Tomorrow needs to break down out of this wedge, if the bears stand any chance. If not, then we could be looking at a slow grind higher into the November elections.
Maybe we are going up to the DIA 118.16 FP first? It's times like these that have me questioning my thoughts on the market. Just when I'm thinking that maybe the bear case is dead, and this rally is for real... that the market finally reverses and heads lower. I'm at that point now, so I know a top is close.
Will it start tomorrow, or wait for Thursday or Friday? It should start tomorrow, but again... this bull just doesn't want too die just yet. But, I'm a patient man and one more day doesn't matter to me... I know a turn is coming soon.