Here's the full M3 panel just to display what's been happening from a larger perspective. M3 is clearly in paradigm as reflected in the equity curve position relative to P6 and the RSQ. Last week's gains of almost 8% were welcome but we have to be realistic and know that the markets can quickly eliminate recent gains given the right bad news. The SPY RSI2 daily reading is only 81 and rising, which is bullish, but there are still dangers afoot.
We must always keep in mind that HFT accounts for over 70% of daily trades and momentum can easily get skewed when the buying or selling programs kick in en mass.
From a market gamesmanship view I fully expect a pullback in the next few days before the typical end of month pop. Meanwhile the short sellers are not faring well and we should expect some market manipulation by the big boys in an effort to recoup those losses.
