Well, after this morning’s wipeout of the bulls, maybe the little darlings are going to get a break. I’m not going wild-eyed bearish until Friday, for reasons already elucidated. I notice that the /ES futures have retraced to the horizontal, which might make for a bounce.
Same story with the small caps.
The /NQ blasted back below its gap (dashed line) and is finding support at its own horizontal. I daresay this might be the beginning of a brief and small range, trapped between the aforementioned horizontals and the cluster of buying that was taking place this morning.
I’m at 30 positions now and remain heavy in cash (30% at this point). I say again, the Bear Force One is what I await. It hasn’t failed me yet.
