Confounding Market

Last night I wrote that a down day today would set us up for a nice rally next week. Of course this market does not want to make anything easy and we are rallying this morning. I still believe the bulls have a slight edge next week given the oversold readings. Some of the excess bullish sentiment has been worked off in the past couple of days as well.Far few people are calling for a year end rally, which is a good thing.

If we rally next week towards the upper half of the range I believe the odds would shift back to neutral. I would want to assess sentiment at that point to see where we stand to ultimately make a decision.

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