The bears will argue that almost every top in the past year started out as a sideways range such as the one we have been in since Monday. Additionally, expiration often serves to help a trend persist only to see it reverse after expiration.The bulls will argue that the market is working off the overbought reading by going sideways as too many money managers are under invested.
Both have good arguments but gun to my head I would have to side with the bears. Even if the bulls manage to push this market above strong resistance at 1130, that move would likely be a last hoorah, as the market is very extended.
Thank you to the many readers that had kind words to say about the blog this week. Thank you for reading. Have a great weekend.