Yesterday surprised with another big squeeze. I was really thinking that it wouldn't go very much into the low 5500's but it just kept going. It's looks, acts and feels like it wants a new all time high but that's exactly when it fails. I've been here before too many times thinking exactly this but then out of nowhere a surprise pullback happens.
And I'm sure the pullback will be met with buying by bulls that missed the long, which then means the pullback must be deeper to shake them out. I don't see any bears left at this point as this squeeze was brutal. I remain bearish her short term... meaning into early next week. And bullish medium term... meaning into the end of this month. And lastly I am very bearish for the month of September and October. As for today, it's OPEX, so it I wouldn't expect much downside. Usually it's a flat to slightly bullish day.
Have a great weekend.
We rallied into the secondary high ala late May 2011. Next week we get the worst astrology of the era which should produce some geopolitical fireworks.
Today was basically the .618 retracement in time following the 14 trading day initial decline off the top. Last week’s hollow candle in the SP500 and near one in the Nasdaq basically predicted that the market would rally throughout the week.
Next Monday is the 19th which is a special number for a certain crowd plus it is a full moon to coincide with the brutal astrology. The major planets are already aligning now and Venus will be joining the mix soon.
And we have the Alien flick being released today.
I think we are going down into late next week and then one more rally back up into the first week of September, and then we get a nasty drop.