Bulls on parade!
—Rage Against The Machine, Bulls On Parade
With the overall technical structure of the market looking like it wants to go higher, we hesitate to believe recent strenght is durable.
This market continues to be great if you’re in Energy and Material oriented stocks.
This market continues to be spotty if you’re anywhere else.
We replaced our bearish Red Flag with our cautious Yellow Flag because the evidence now stacks up to a modest bullish bias.
We have no idea who will show up to buy or sell in the coming weeks.
As mentioned before, we are seeing a split environment of heavy selling and heavy buying.
Should the markets move sideways on high volume we will consider this bearish.
We should be back in full blog form for the next edition.