Mr. B reporting in.
The NYMO cycle is up, and we are back in the upper turn zone.
We had a down cycle that confirmed just as it completed on May 13, which isn't terribly helpful.
This has been a very powerful rally, but it has not been like the Fed driven V bottoms we have seen before.
Anecdotally, the general look in the past has been a powerful thrust, a pullback and then steady positive readings.
This move had the initial thrust and pullback, but what has followed has been very volatile and choppy.
The unfamiliarity with this behavior has kept me cautious.
Price-wise, we have been taking out up gap targets and building a stack of down gap targets.
At the moment, we are forming an inside day sandwiched between two tight gaps.
Very interesting and I anticipate both to get closed, but that is a guess. Anything can happen.
We are testing the 200 day MA. It is fair to consider a pullback and retest in the days ahead.
A failed retest could be what sets in motion a serious correction. A successful retest would seek the highs. We shall see.
When a trend is volatile, I like to identify a channel to boundary the motion. I am not seeing one here.
So, maybe we will get a wedge forming in the days ahead that can provide a tell.
I am flat. I have withdrawn from this market until I can conclude I have an edge.