The tape action in the SP500 today is definitely NOT confirming the bearish thesis forecast over my previous two postings. The tape action today basically did a ‘stick save’ and now has once again flipped the bias to the bullish side.
In addition today the financials are very strong, not to mention many of the DJIA stocks after having been in consolidations. In fact many of them are now turning higher creating bullish divergences.
If there is one lesson out of this, never short a market too early and above all focus on the ability of the tape action to show extreme weakness at critical points. The fact is that the market continues to show strength exactly at the most critical moments when there is potential for a switch from bull to bear.
I can come up with so many possible reasons why the market should go down, but if the tape action does not confirm it then it would be a pointless exercise.
So now, back to focusing on individual stock setups on Nasdaq and NYSE… and let the bull keep running…