Last week I was looking for the market to be up into the quarter end. Was it up more than I thought? …. yes, it was up more than almost anybody would have thought! The squeeze is clearly on now, and momentum has been driven to levels that mean price likely will not decline immediately or easily. So look for more squeeze up early in the week. The first decline will very likely get bought up when it eventually occurs. Any meaningful decline has been pushed down the road. 

Having said that, the chart above shows a 7 period and 14 period ADX indicator. It is a measure of trend in the market. When the lines start to nest below the 20 level we usually get a good move. This chart is a very big picture view, so it won’t happen immediately, but we are preparing for a larger decline.

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First the market needs to squeeze out the shorts and make traders afraid to get short again. Sentiment changes happen quickly, but there is still plenty of room for more bulls before we roll over. So I am not looking for anything this week except to buy the dips. A top and rollover will take some time. Don’t chase and dont panic this week. Most moves are not going to last. Update on Tuesday. Good Luck. 

Thanks,

Joe