I haven’t posted in a few days and wanted to provide a quick update … my lack of posting is simply because my view hasn’t changed. Today finally showed what I have been seeing (and discussing here) for the past few weeks. There is a bearish underlying hue in the market and today it finally reared its’ head in full force.
I am hopeful this will be a small downside move to establish a higher low from the lows of October, but I am starting to feel like we are going through a major topping process and we will revisit and pass the lows of October.
Time will tell if this is the case and I’m certainly not positioning on the short side for such a move, but I am just getting an eerie feeling about the market over the past week or two. It isn’t abiding by ‘the rules’ (if there are any) and it is confusing many, many traders, but most are still uber bullish which I think is a problem.
The good news is that the decline over the past few days has been very controlled and not panicky, but that has served to keep the bulls strong in their positions … which will cause a serious downside if and when the market falls enough for these people to want to get out of the market.
I remain on the side lines waiting for a low risk entry. If we have a strong gap down in the morning (which I don’t expect), I might get short on the market, but more than likely I will sit and wait for a long setup to occur. It really depends on what the market does over the next few days.