I hope everyone had a great Thanksgiving yesterday. I enjoyed it for sure. Oi, back to the market. Oddly we still haven't seen any red day for a week now where the market "paused". It's just been a grind up day after day with no way to get out if you are a trapped bear. I have to think that if the bulls plan on making a new high they need a red day.
Today would be ideal as the markets close early at 1pm EST and they could keep it as a small one. But if they decide to go up another 50 points (or whatever) they are going to exhaust themselves I think. Meaning they won't have anything left in the tank to make a new high next week. Pullbacks are healthy and if done right they get new bears to short and then those bears are fuel for the next move up.
But right now I fear they are running out of bears as a non-stop rally like this has most bears throw in the towel on shorting and then they become bulls and start taking longs. When that happens you know we won't see 7000+, or even just a slightly higher high as when everyone is long there's no more buyers to get it up higher.
So if we see another good up day today I fear will will not see a new high and will rollover next Monday to start the next leg down. If we get a decent red close then we can go higher again next week. I'd love to see 7000+ to short but without a "pause" day (slightly red) those odds go down quite a lot. If we see another nice green day today I'm going to be looking for a short.
Have a great weekend.
