Market is Not Confused - Posted by Coolhand

A few days ago I said -

"...given NAAIM has not been bearish through any of this selling pressure may very well be an indication that a market recovery could come soon and has the potential to be explosive. I am not making predictions. I am just reading the technical and sentiment landscape as I see it."

I like to think I do a good job of capturing market action most of the time by using the smart money to frame my analysis. I know many of you find it well worth consideration and while I don't post for the purpose of gather "likes" they do tell me how my analysis is being received, so thank for that.

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The market rallied hard once again today. The market is really telling us that it is not confused about current events, otherwise it likely be moving in the other direction. It already knows the outcome and is apparently betting on it.

Price on the DWCPF closed at an all-time high today. Price on the S&P 500 is not far behind, but does have some resistance to push through before it can (hopefully) join the DWCPF. Momentum continues to rise.

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Breadth is looking good and remains bullish.

Earlier today I said that the smart money (NAAIM) went neutral, but that they are not shorting in any serious measure, which keeps risk to the upside. I think it may very well be possible they are allowing for a pullback to reenter the market, but they may also feel the need to reduce risk for some other reason.

I remain bullish, but anticipate some profit taking and consolidation at any time.