The US stock market has been resilient since the beginning of the year, specifically the Christmas Eve bottom. Every single damn dip has been bought on every single time frame and you can see the hourly extension from any view of the charts. Daily the dip buyers come in banking on accelerating earnings growth? China trade deals? Trump tweets? I am not completely sure, but there are #noselloffs allowed.
Until Now. We are at a crossroads where one of two options are going to occur. We are going to pullback here and head lower down into the 160s, or we are going to short squeeze to new highs and noone else is going to be allowed in. This grind will end in one of those two ways. I believe the bulls would welcome a pullback and the bears need it. However the bulls would also like to rip the faces off the bears to the upside. We should pullback here…but the market is irrational sometimes…
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