Lots of Ammo for the Bears
Lots of focus on technology this week as some of the behemoths report earnings. One thing is certain; there will be movement. All of the major stock market indices ended last week on the defensive as the bears put the plow down with a very heavy selling wave last Friday afternoon. That resulted in hundreds of stocks closing lower from all-time or recent highs which a yet another sign of a tired market. Coupled with overly confident options traders and very bullish sentiment surveys, the consolidation/pullback continues. The longer the bulls can keep prices from declining, the more likely the ultimate resolution will be strongly to the upside.
I find it really interesting here that there are certainly enough things to warrant a deep pullback but price, the final arbiter, has held up remarkably well. Momentum has been that strong, so far. And let’s not forget that the calendar isn’t exactly a pillar of strength for another few months. The bears have a good deal of ammunition and if they can’t get going sooner than later, we may just get that melt up to Dow 30,000 as I have been discussing longer than any analyst, pundit or clown.