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I am keeping a very open mind about this market, as we squeeze into the close bell of this dramatic trading session. I see many sloppy daily charts, but then again a bunch of weekly charts are suddenly looking better. The main thing I am certain of is that the bulls have more heavy lifting to do in order to get a sustained breakout. I am content to methodically leg back into the market on the long side, should they follow-through to the upside.
A good example of what precisely I am referring to is the chart of the IYR, ETF for the real estate sector. Note the potential for a solid, symmetrical inverse head and shoulders bottom spanning several months. If confirmed, you are talking about a very big measured move higher. That is a big “if,” but it puts me in the position of respecting its potential. You can see the shades of gray that this market makes you consider.
More on the recap after the bell…
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