I was expecting a much weaker close yesterday. The market had the chance to sell off but did not take it. This leads me to believe that it is going to consolidate for a day or two before heading down.
The put/call ratio is suggesting a top is in the works:
The ratio did not reach the recent usual overbought level but this is normal behavior before bigger corrections. It may be in a period of transition, where overbought and oversold levels are lower.
For ST Trading, my bias is short. I will sell a bigger rally above yesterday's close or after an hourly close below the 7 h EMA. I will keep in mind that the market may just whipsaw for 1-2 days.
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