- We are headed into the turn of the month, which is seasonally strong.
- The market will not be overbought until early next week.
- This debt ceiling show will end and we will likely see a rally when that happens.
- Europe is oversold and should continue to rally, taking us along for the ride.
Better Late Than Never
The biggest negative for the market is that there does not seem to be much of a wall of worry. Rydex traders are positioned bullishly, sentiment surveys are showing very little bearishness and we are seeing very little put buying. That said, I am going to continue to give the market the benfit of the doubt for the next few days for the following reasons: