Fake Bearish Day

I would call today a "Fake Bearish Day" for even though the market closed negatively, the internals were actually very bullish! In fact long term bond yields rose as investors move out of bonds into equities. Total equities put call ratio also remained stalwartly in the bullish zone. In fact, the worse than expected GDP number (as well as all of the other negative surprises today) should have caused the market to take back all of yesterday's gains, but it didn't. All of these tell me that the bulls are indeed very strong at this point and is aimed at challenging the 2100 points level as soon as tomorrow. However, resistance should be expected at that level with the market in such short term overbought condition. I maintain my view that every dip right now should only be used for the exit of losing shorts. I do not even recommend buying on the dips for short term trading for the moment.

Market Crash Timer: ORANGE

For now, the market remains in short term bull trend within an intermediate and primary neutral trend.