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Is the market ready for a 15-20% retracement back to the pre-trump levels or setting up for a 20-25% rally to the high side?
Looking at the long term view it is evident that the market is at a crossroad.
Below we have the S&P 500's expansion since the dot.com bust and the financial crisis.
Volume have been very low in this recent rally and the S&P 500 VIX shows this.
Noone is selling, yet noone dares to buy.
Something doesn't smell right in this market at the moment. Either it will snap like a bow to the highside or take a breather down to November levels.
I lean to the last option, but we should keep our eyes at both options.
What do you guys think?