The Week Ahead

I suspect the week ahead is going to be characterized by Window Dressing and the end of Window Dressing on Wednesday, If there's any substantial corrective bounce, I'd expect it to come AFTER Wednesday with the signs of accumulation of sold small caps and mid caps during window dressing, potentially being bought back on an oversold/short squeeze basis, yet still a trade, not a shift in positioning.

The 3C charts haven't added anything new to what we've already seen and I think they are likely to continue in line, I'm thinking some more short term downside early in the week, perhaps a lower low than yesterday's before they build a base large enough to really bounce from. Yesterday's divegrence and today's bounce are pretty much percent and TICK shows where the bounce ran out of gas. There are divergences to build from, but I consider them to stop at about 3 mins for now meaning a pullback or lower low would likely be needed for a base large enough to give us anything more than what we saw today.

HYG was used to push the market today at 2 p.m. The VIX relative weakness has fallen back in line, leading indicators look like the next move near term early next week will be down a bit as does HY credit.

The overall position of the market I would easily classify as stage 4 st this point so bounces should be countertrend and used in such manner to align your larger positions with the most probable outcome represented not only by the 60 min+ 3C charts, but the actual stage, stage 4 DECLINE.

As I said, as of Wednesday, things may develop in a different direction short term, but we don't have the gas in the tank or the size base to do much more than what we just saw,

I'm going to get this out quickly and follow up with the charts I'd like to include if I had time before the bell.