I think the market has decided to simply drive everyone, bulls and bears alike, completely out of their minds.
This chart of the /ES, not even the length of a day, captures it nicely. The bulls have a nice run-up, break out of the yellow consolidation pattern, and look ready to kick butt. The bears (including me) freak out and figure it's time to start getting on board. Then everything falls to pieces.
Added to which, the bears might say, "Phew! This countertrend rally is over! Time to rock 'n' roll!" But this is, by my measure, the three thousand five hundred and sixty-first time this "turnaround" could be declared in the past eleven weeks.
The bottom line is that it's getting very difficult to commit to either direction since both sides are getting faked out on virtually a daily basis.
