We grinded higher yesterday, which looked and felt like an exhaustion gap to hit all the bear stops. We are now within a hair of hitting a new all time high too, but is it that easy? We have FP's showing up to the downside (a 600.14 SPY appeared after the close at 5:58pm yesterday), but nothing on the radar that could trigger a sharp pullback to hit them.
I don't know if they are going to bust through to make a new high first, and then pullback, or we see some surprise drop out of nowhere since the bears are now far and few between. Bears are really running out of time here as far as "cycles" go, and this week is pretty much all there is left on the bearish picture from prior cycles in the past.
Once we get into July it's pretty much bullish the entire month and into August. Sure, there could be some small pullbacks but nothing really big is expected. This market is really hard to figure out, that's for sure. You just can't predict what the next big surprise will be that causes a big move (up or down), but it's currently not going to pullback hard unless some news event triggers it. The next few days the bearish period will end, so if they want I guess they could chop it sideways? It just feels like yesterday was a big stop run on the shorts, and I don't think there's many left. So what's going to push the market up next is the big question?
Have an blessed day.
