Remember that most of the comments that appear here for the purpose of journaling our thoughts on ‘market direction’ are simply observations we make regarding various legs for the larger strategies that we run. For example, am I watching the e-mini? Yes. But that’s simply one leg, of a larger strategy and such comments pertain to correlation strategies I am running.
If one pick something like the Spiders (SPY) or e-mini S&P 500 Futures? The “stock market“? Our processes are telling us to remain somewhat bullish on this leg. We saw trading above 2110. Those who are swing trading above that level are now trapped, and the question to be asked … is how much pain are they willing to endure? When will the bulls step back up to the plate?
All questions that no one has the ability to predict with absolute certainty.
For myself? I’m wary of turning bearish. At least … at the moment. Naturally, things could change. But for the moment, I’m wary this current dip lower is simply a headfake. A feint. Before the market rips higher yet again.
Never forget the markets are a mean, mean mistress, attempting to dish out the maximum amount of pain to all participants.