This doesn’t mean the market is crashing tomorrow, but it DOES mean the momentum pattern finally broke. When that happens, you tighten stops and start planning for the most likely next move: a pullback into the pocket zone and a test of the 21 EMA.
BETR is flashing a short squeeze setup, with 30% short float and earnings coming up fast. What’s really wild is that it was up 15% on high volume, and the pre-earnings average move is nearly 18%. That’s massive.
Markets have seen a very strong week, adding to gains from the prior two weeks. The news flow is good and the technicals are even better. Everything I would look at would imply this is a regime shift and that bulls are solidly in control and will remain that way. There is only one technical pattern that could cause them a problem, which we will review. For now, everything is aligned in the bull camp, from the indexes, to credit, to dollar, and oil.
