A Bit Too Rare

The oversold rally might need a bit more time in the oven, judging by this morning’s price action. After yesterday’s furious reversal higher, the bulls had every opportunity to gap us higher for a sharp squeeze. Thus far, though, shorts are not in too much pain given the context of the correction for most of May relative to the recent bounce.

As I noted last evening, I have a few longs on my watchlist as bounce ideas, but I do not yet see a healthy, trending environment like we saw in the first quarter of thus year. Thus, I am content to sit in cash until I see a more energetic bounce higher and some of the setups trigger. I am also still looking at the low-1340’s-1358 area as a logical level where we should target for a bounce. The long holiday weekend approaching lends itself to a drift higher, if only for a few days.

The hot action is few and far between today, save ROSG and GENE. In that same arena, keep an eye on GHDX and MYGN for pin action plays. Other than that, I will be looking to see if the bulls can put together a stronger effort this afternoon.