The market is ready for a correction. I think most of the early shorts got burned and gave up. The put/call ratio spike (chart above) is suggesting this, but also the high volume registered yesterday:
The high volume and the weakness into yesterday's close are also indications of bigger traders taking profits.
I think today's strength can be sold for a quick profit but, since tomorrow is a very important day, I will wait and see what happens. In case we get a correction, I think it is high time we saw some bearish themes play out, like the dollar correcting its recent downfall, otherwise this bear seems ready to grow horns and put a tail on.
As I said before, data released tomorrow is important for the Fed's outlook on the economy. If it comes in positive it will be interesting to see how the markets trade until the next FOMC meeting.
No comments:
Post a Comment