Its Raining Supply

There are about $20 billion in IPOs and secondaries scheduled for this week. In addition, we are coming off a sentiment extreme. I believe that means that the upside will be extremely challenging for the bulls this week. Under normal circumstances I would expect a few more attempts at the high, as tops are usually a process. But with that much supply on deck, I cannot see the bulls making much progress.

The good news is that if we get another down week than next week the market would be oversold heading into Thanksgiving. That would be a good setup for the bulls, but until than I believe the bears are in charge.

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