I think we needed a sell-off to set the stage for the markets to continue moving higher. Nothing has changed per today’s close on my bullish outlook for the markets since getting a buy signal last Friday, however I want to make one thing clear. If the markets have a few more days like today I may be back in the bearish camp as I would most likely get a sell signal on the markets. I just think to many people were on one side of the boat at Monday’s close.

As you can see in the table below the bullish/bearish ratio was 42/58%, indicating that relationship wasn’t as lopsided as the closing numbers might suggest. I picked up a few call options at the close on the dia, spy, and qqqq looking for the markets to regain their footing.

clipped from www.market-harmonics.com
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