For 8 days the market has been eating the shorts’ lunch — in the most demoralizing way possible — a tiny bite at a time. Today the market is taking a big bite out of their accounts. And doing it in an emphatic fashion. A close on the highs will take out the May 1 high of 1415.32 and will also take the air out of the bears.
Nothing could more vividly illustrate the wisdom of the old market apothegm: Never trade with an opinion.
Doubters, fidgeters, fence sitters will be pointing fingers at each other and denying the reality of this wave: 52 days, 53 points. They will point out that there is no volume to support the trend — which just goes to prove that volume is a secondary indicator. (And besides that the volume in the futures is breakout volume.) But the next attack will start any minute. The April top is only 5 points away. Penetrate that and the fun starts.