A Bullish Observation If We Don’t See Heavy Selling Next Week

I was glad to see the overnight ramp reverse, but there are a few peculiarities I want to raise.

  1. It’s a little unusual, if that was the top, for the market to top overnight like that (by that much).
  2. On a percentage basis, the selloff was miniscule. If we’re dealing with our coming off a major top, I would have expected something more like August 2020. We lost 7% in two days. Today was essentially a nothing burger.
  3. In the cash session, such as on $SPY, we have the look of an ascending triangle. If we press those highs again, this may have been the completion of a wave 4 (of some degree).
  4. It is a holiday week coming up and a lot of big money isn’t around as much, so will the market be muted?

SPY


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