No, I understand exactly what you said...
You're expecting a 50 point pullback...
That means the market will let shorts out of this trade easily.. and I don't think it will. We have a lot of accumulated bearishness that has been very persistent for the past 4 days while we slowly were grinding up.
And now with 2500 to 800 positive A/D and MCOs breaking out of downtrend, the market has to suddenly roll over and let the shorts out......
Not gonna happen, IMO.
MCO's looking good, summations turned, A/D is strong. 15 min chart changed trend, shorts never gave up... why would it roll over ?
I'd say scorch into the close, but then again, we're having a very nice quiet uptrend while everyone is looking for it to roll over, so the nice quiet grind may continue....
The only negative spot here is financials that are looking kinda weakly. But just about every other sector looks good.
Edited by ogm, 22 August 2007 - 12:27 PM.