I was non-comittal this morning. And this rally is still odd from what I'm hearing from some pros. Haven't been around a computer all day so this is late:
Last time, I said that while the technicals were not at all Bullish for the market it was hard to argue with seasonality, and we knew that they like to rally the market on the first day of the month. Sentiment is still interesting here. I see some smart money Buying Puts, and some dumber money paying up for calls again, while the OEX smart money is still strongly looking for a rally today. This time, however, ISEE is flashing a ST Sell as is the $-weighted OEX and RUT options. I have to think that we retrace a bit of that rally. The trend has not turned back up by our measures and neither has breadth, but both are trying. Next week is statistically pretty weak. The rally is a funny one.
