Unwinding; Nothing Bearish; Fed On Deck

Can you believe it! The market pulled back for a whole day. Who knows, it may do two days in a row. You never know. It's not unusual for a market or a stock to come back and test the level from which it broke out. In this case it's S&P 500 2134. I don't know that we'll get that low, but it's always possible for this market to back test.

The fact that it shot decently past 2134 allows it to have a reasonable pullback without breaking support as it unwinds. It would be healthier for the market to back test and get some unwinding, but if it does actually do that, it would likely scare folks that we had a false breakout. I don't think that will occur. It would if the market was playing the real world, but since the market rarely does that it's quite unlikely that we'll break far below 2134 on the S&P 500, thus causing a false breakout from a couple weeks back. The bulls waited a long time to get this breakout, and, with the bears mostly silent, it would be a surprise if this move was a false one. Anything is possible, but it makes little sense.

The bulls should throw everything at this market if we head back towards S&P 500 2134. And they should have a successful time of it. You'd want to see a bottoming stick if we had back towards 2134, but it doesn't have to work that way. If the big money doesn't want to show its hand they may allow for a full candle close down, and then simply reverse things without warning. Surely, they don't want you in. We can hope for a bottoming stick, but we don't have to have one. In addition, we don't have to have a full retest of S&P 500 2134.

Just keep in mind that back tests are normal and we could get it at any time since we're living in a stock market of manipulation. Today was nothing bearish, so don't get too disappointed, even though most of you are thinking that upside action is the only legal action in this market these days. Today was fine. We could be barely down and folks will think what happened. Froth is building quickly. So keep today in mind for what it was. Simple unwinding and nothing more.

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