In a Trading Range Until We Are Not

Conditions haven't improved much since yesterday. At the same time we are really struggling with the reasoning for going bearish at this stage. There are two reasons for this: 1. The put:call ratio is overly bearish meaning that too many are leaning short here. Since the crowd is only right during the end of trends, this contrarian indicator is fairly reliable here where the market is in a trading range. 2. Indices are trading in head and should patterns, but the neckline on these patterns has not yet been breached. Anticipating breakouts or breakdowns is always a loser's game, so until we have confirmation, we remain agnostic about a breakdown. For now we are still in a trading range. Perhaps the Amazon report issued after hours will be enough to cause selling through support today, but right now support just below yesterday's close is still fairly strong.