The market rallied hard out of the extreme fear base built over the past few days. The pull back, rather than being technically damaging, was akin to a ballerina who dips before she springs. Now that fear has been released the tone is likely to be set by today's Fed minutes, which are released at 2:15 p.m. ET.
The semiconductors regained leadership yesterday, and this is precisely the type of action tech bulls want to see. Technically the charts look to be in fine shape, especially tech. Unless the Fed springs an unwanted surprise today, we should see this positive bias continue for a few more days.
Note that shorts need roughly 7 days to cover, so if the market moves higher here, we could see an explosive situation on short covering alone.
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Here is an example of what listening to Bob Carver will get you. Anyone with half a brain should have known to buy the market open Wednesday. Right on que here comes Carver with his waffle:
Updated at 9:30 EDT June 27
The Yen is trading up in the overnight market, making it likely that additional selling of carry trade positions will take place today. Also, the overhead polytrendlines on the RTH Tick Charts are indicating continuing downside pressure, possible into Thursday. The wave count shows an ending wave c down is probably ready for a fourth wave bounce, but a fifth wave down is likely before we get a true trend change to the upside in stocks.
And then another waffle around lunch, but you get the picture.
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