Very impressive move here by the bulls as I have said many time when we do get a rally it will happen very quickly. Now I am short here and maybe too early in fact I honestly though yesterday might be a near term top but the news today push us over even yesterday's highs. News rules! as you know especially in this market. We have got to respect the tape here and the bulls will no doubt have to rest if they want to continue this bullish stand for more than a couple of days/ weeks.
We are almost 20% higher off the low of last monday and that's an amazing run indeed. I would think a pullback around 50% of the move would be good to reset some more bulls as many people are on the sidelines. Now I am not turning bullish but you have to play the cycle and I should last month more than once that March would be very exciting more than likely having a near term bottom and so it seems so far, BINGO!!!!
Don't chase the long side here buying these banks and some of these techs are foolish here for more than a trade, the best set up would be to look for some exhaustion and short then on a decent retracement go long.
After today's strong action I do expect some follow through tomorrow and a possible climax especially with the FED announcement, also remember this week is option expiration and the week after we usually reverse option expiration week move so don't get caught flat footed.
MARKETJEDI
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