Strong Move is Near

We are still concerned about the market rolling over here, confirming the head and shoulders pattern developing on the major indices. However, closer analysis of daily charts and considering the Russell 2000 is once again threatening new highs, a strong case can be made for the bulls here. Put options have been stacking up at these levels, which is a good contrarian indicator that bears are going to get burned as market momentum threatens to iron out overhead resistance. We don't know yet what is going to happen but it is fairly clear that a strong move is close at hand. Likewise, we have a lot of stocks in the market making new highs and very meager numbers of stocks making new lows. Other than a week ago Friday, we don't have evidence of distribution, but we have plenty of accumulation days and yesterday can be included as one.