Reversal?

What a day, while we closed in the greens yesterday was a good day for the bears. We opened yet again with another GAP up and rallied strong at 10:00 thanks to our amazing consumer numbers. Similar to Monday gains could not be held and were sold off not only after the morning peak but also during the mid day. This marks day number two of changed market sentiment. I was rooting for yesterday not to close red believe it or not - let me explain why. Here is the daily chart of our last 5 days.



We had our 3 strong up days and 2 spinners this monday and yesterday. Wait .... what happened? Something does not look right about the monday candle. Oh yeah I forgot. This is the chart of the last 5 days we had at our last MAJOR top. Emm yes, this is exactly how it looked like during Jan 5th. We all know what happened after that. I am not saying this is a top here, but looking at the market unable to hold on to gains after the best possible consumer data is quite odd.

The other thing I wanted to talk about is sentiment. Many readers here are following the same blogs, one in specific is slope of hope. One of their readers is called mikevadon. He himself is a blogger, however, this week something drastically changed with him. I am not sure what happened but you all know what I am talking about. He has turned into a major bull from one day to the next and is running through slope almost mocking everyone who is bearish. I honestly think he is secretly short and will use the last few days as an example of showing us how tops are made by converting every bear into a bull - even after we have rallied for 50+%. Who knows but this is just one example of the current tension between bloggers. Whenever we are at tops or bottoms traders and investors are filled with either absolute fear or absolute greed.

Ok I am running a bit late for work - will post more updates shortly.