The market saw a nice thrust this morning on the back of some constructive action underneath the surface yesterday. As the session has progressed, we have seen even more pressure applied to shorts in the hole. While I am playing along and not fighting this tape just yet, I am still not entirely embracing the bull case for a variety of reasons that I have covered in previous posts and videos.
Below, the 5-minute SPY charts indicates a pretty textbook trend day higher. A close at the highs would not surprise me to apply maximum heat on the bears looking to top-tick the market. I also expect volatility to pick up a bit towards the end of the session.
Overall, the 1360 area on the S&P 500 is at the top of an area which figures to be a congestion zone. As markets tend to do, we have seen a strong move through it–An overshoot, if you will, as we are actually overbought now by quite a few metrics. How the market works off that overbought condition will be very telling going forward.
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Indeud.