Sucks being right and a truther. Just ask Peter Schiff.
Finally, finally -
On to the lie -
Stocks Now Most Overbought in a Year - LMAO - since when did that matter? They've managed another sensational short squeeze off the low. Ahh, the power of the Fed. Is it a wonder that most have not learned by now what's coming in such situations? The big darn question is now what?
Well, I will not speculate, yet. I've learned to follow the Fed and not try and outguess them. I believe they will stay their course and leave the possibility for further easing wide ass open (while they use stealth QE to maintain the farce they call a market). Just leaving the possibility for further easing on the table has been enough in the opast to do their dirty work. For the bulls, what I believe you want to see is that larger IHnS formation complete itself (target near 2185).
A pullback from here to 1925 would set a nice right shoulder, it would relieve near term overbought conditions and allow the daily indicators the room they need to set up for a bigger run (there is only one thing that would power a run to that level - MOAR). Maybe they announce moar tomorrow, the market reacts negatively and then everyone jumps on board - that's about the only way I see that 2185 getting hit.
Yesterday price ran to resistance and met the first/lower IHnS target off the low. Too far too fast? LOL, never in the Fed's world. They don't care how it gets there, just get there baby (up that is).
SPX 30m - Well, this is now the 4th iteration of the red rising wedge and the second overthrow situation where short term indicators have been abused. The run has been textbook for the most part - bust black resistance, backtest it and then move on up to the IHnS target. Some more abuse may be in order (up to that black diagonal backtest ~2005), but I'm not sure how much more this run can take. That black diagonal backtest will be a big deal, and it will be a point I will consider calling a major top (or here if they don't make it there). It's just one of those technical points that screams doom following a bull trap run and will be close enough to a major double top with the weekly and monthly negative divergences worsening.
I have no clue on direction from here right now. I prefer the pullback, but who knows with the Fed tomorrow. All we can do is wait for their direction.
More to come below.
Have a good day.
GL and GB!