MARKET COMMENTARY by Woody Dorsey:
NEAR TERM: Market Energy was negative again yesterday but engineered a late day come back and thus only generated a 38% Bullish reading for today. As noted, volatility around the FOMC and a latent positive spin into 6/20 are perfect prompts for some short covering. The S&P is already headed towards the Key sensitive area near 2085. Hopefully, for the bears, some recovery and churning would be ideal. Again, there is no reason to be bullish here.
INTERIM TERM: The thrust up from 5/19 lows was an Endgame and culminated on 6/8. All of the shorts were cleaned out at that top near 2120. That is a great Risk level. The overall probability profile is that an important correction has been looming, is now underway, and will eventually culminate in a Black Hole Environment. The best declines always come nearer to the end of a Trend. There is no reason to be Bullish here but remain aware that stocks may try to hang around for now. Think of the market as being in a Trending Function to the downside which has just begun and thus, sell offs may be measured and uncertain at this stage.
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