On CNBC Thursday, Carter Worth rescinded has breakout call that he made on Tuesday. He said that he expects the market to “rest”. Now, if you are a bear, this might make you uncomfortable because your position just got a little bit more crowded. However, at the end of a long move, you often see a shift in sentiment like this just before the market changes direction. This rally can’t correct until the bulls start pulling their bids and defect to the bear army, right? So, we may just be seeing the very beginning of a shift in sentiment from bullish to bearish.
Thursday was obviously a clear win for the bears. The bulls got a lot of good news in the morning, but the market sold-off on strong volume anyway. Things have gotten a bit chaotic and the bulls need to send in the troops to restore order before the hunters become the hunted. As I write, the futures have rallied a few points on another beat from yet another China PMI report, and we have a bunch more economic reports this morning. So, if the reports continue to come in strong, will the bulls be able to get the ball rolling again? Or will they turn lemonade back into lemons like they did Thursday morning?