We filled the gap and today started to slide back down, I decided to take a look at all our previous bounces this year that resulted in a new high from a technical perspective and noticed something interesting.
In this case the McLellan Oscillator which measures market breadth is showing that this rally is really fueled by some of the larger caps that are being bought back after being oversold, the overall market is not really rallying across the board.
In the past when we bottomed and the market was going to push to new highs we saw a strong upward thrust in the McLellan, looking at scores of 80-100, in this case we are under 50.
Not only that but the MACD is barely across the zero line and this is happening while the RSI is starting to fall off.
Of course we will need another few days to really get an idea, but it may be that this was just a short squeeze that got out of hand and we may see the market come right back down in the coming weeks.
Just my opinions.
In this case the McLellan Oscillator which measures market breadth is showing that this rally is really fueled by some of the larger caps that are being bought back after being oversold, the overall market is not really rallying across the board.
In the past when we bottomed and the market was going to push to new highs we saw a strong upward thrust in the McLellan, looking at scores of 80-100, in this case we are under 50.
Not only that but the MACD is barely across the zero line and this is happening while the RSI is starting to fall off.
Of course we will need another few days to really get an idea, but it may be that this was just a short squeeze that got out of hand and we may see the market come right back down in the coming weeks.
Just my opinions.