A market trending as smoothly as today’s, where even the chops are like waves on a perfect beach, can make you wonder how long a good thing will last. This time, a combination of factors makes us think it’ll last all the way up to 1700:
- a strong up close would suggest that the Friday Effect will lead to a Monday rally
- It’s the end of the month and people have some business to finish or plan ahead for
- the MIM is showing a 65% imbalance to the buy side, indicating that a lot of traders are sitting on some buy orders, waiting for that sweet spot.
An edge means a preponderance of factors all pointing in the same direction. On the chart we’re seeing lines that were resistance now acting as support. We see trendlines being obeyed. And though volume is light, that can be the setup for a “thin to win” rally.
In any case, there is nothing that says this is a good time to start calling the top and going short.
