As expected, the market rallied a bit more on Wednesday. Interestingly, the highs of the day did not hold and a good portion of intraday gains were erased. At the same time, price is now entering into an area of resistance where it's possible we see a lower high followed by a reversal; though not necessarily an immediate one.
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The bullish perspective still shows breadth very bullish and it did hit new all-time highs today. But, it has had a bit of a run, so we could be due a pullback for this reason as well as the hitting overhead resistance.
The OEX is neutral to modestly bullish for Thursday. The CBOE is bearish. NAAIM reports tomorrow.
I am looking for a pullback very soon, but the downside could still be limited if we get it. Overhead resistance may hold initially, but price may test it more than once and certainly we may see resistance break on further upside. I am neutral at this point.
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