The market is now extremely overbought as the short squeeze rally continues. The levels of high cash and high short positions were so extreme heading into the month that the rally is certainly not out of the ordinary. They can potentially take it up a few more days and get everyone back in again before it drops, but the pullback is getting closer.
The above is from Larry Connors’ Daily Battle Plan.
To learn more about the Daily Battle Plan, click here for more information.
Larry Connors is founder of TradingMarkets.com