The last time we met, we discussed how the action has been a bit tedious lately and how neither bull nor bear was able to make any meaningful progress. We’re still in the first half of a short week, and so far, that hasn’t changed. Whether or not we’re seeing the market moving towards a transition phase that will result in a major shift in character remains to be seen. Despite the fact that so many insist that they are able to tell the difference between a healthy pullback and a significant market top, the simple fact is that absolutely no one can predict which way the market will move over any given time frame.
About the best we can do is to say which side the odds favor, and the odds are never 100%. For now, the broader market profile has yet to show real signs of distress. The shorter-term action may remain challenging for the time being, but while the odds still generally favor the bulls, there are solid set-ups on both side of the ledger if you’re willing (and able) to do the chart work to find them.
Let’s take a look at some charts:
At the time of this post, RevShark had no position in any of the stocks mentioned.