Where Is Supply?

We have now had two cash sessions that ended with panic buying into their closes that were not reversed by the open, which is very uncommon. It’s hard to interpret that. Obviously an enormous amount of risk is being accepted by the market here and there are no sellers in sight.

We’ve now even breached the February highs without even a second thought (arrows). Literally no sellers of note at any price. This may still be primarily a short covering rally, but for all I know, it’s nowhere near being done. After breaching these highs without any effort and without any morning reversals, punishing those who panic buy into the closes, I sort of have to assume that we’re in a powerful markup.

Until we see some actual selling show up, I see little reason for us not to head to all-time highs at this point.

ES


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