As readers know I believe the market is stuck in a trading range between 1080 and 1120 on the S&P 500. I was hoping that the bulls would push us to the top of the range so I could do some shorting. However, unless things turnaround quickly it does not appear that will happen.
The best case scenario for the bulls would be for the market to stay down over the next few days, without giving up too much ground. It would help if market participants became bearish during that time period. That would work off the overbought reading and allow the bulls to mount a more sustainable rally. For now we are still stuck in the range.