This is a quick update. Capital Observer will resume Tuesday.
I believe we are in a period of correction as we will be intermediate term overbought at the end of the day on Monday. In my experience time is more important than price in measuring a correction. Sometimes the market can correct by going sideways for a few weeks while other times the market plunges over those same few weeks. I am planning on remaining cautious until some time passes and/or we get a correction in price.
I don't expect the market to collapse completely but a correction of 5% from the recent highs would not surprise me nor would some chopiness for a few weeks.We are approaching the turn of the month so its possible the market tries to rally but I don't believe it will make much progress. If the market manages to score a new high during the turn of the month period I would likely further reduce my moderate net long exposure.