However, this bounce has taken place under shares selling activities by large players.
This can also be seen on the S&P500, on the NQ8 and on the XLK ETF.
The Cumulative ticks also shows that algos are not really investing in the markets.
The reason behind is probably expectation of higher rates down the road.
This is also probably the reason why gold and the 10Ys are under selling pressure here.
On a positive side for the markets, we can see below that both oil and copper are easing off. Oil is down probably due to the US providing oil out of its strategic reserves, but copper being down is another question that I cannot explain here, except maybe on a possible weakening of the housing/car markets.
Finally, we can see below that the NHNL indicator is still below zero here and the Yield comparison tells us that the market is at the top of its comparative valuation - zero upside here except if rates come down hard.
Conclusions:
Equities selling tells us that the market will probably weaken at some point in the coming days.
We are in a speculative Monthly options expiration week, which is usually bullish but volatile.
I would short bounces to $3800 on the S&P500, but I even doubt that this can even occur.
