No news was good news and the short squeeze bear market rally I discussed Friday and yesterday morning came to fruition on Monday.
The market is now in neutral territory as both our Country Fund ETF Universe and Main ETF Universe have 2-period RSI readings in the 50’s. Any large movement over the next few days will be tied to Europe. Should there not be unexpected news, the rally will continue because it’s the end of the month (and quarter), and the powers that be would much rather see the market down a bit/flat rather than down 7%. They’ll get their way if the news from Europe cooperates.
Should the market rally over the next few days, it will provide some excellent short opportunities heading into Thursday.
The above is from Larry Connors’ Daily Battle Plan.
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Larry Connors is founder of TradingMarkets.com