S&P 500, Gold, Silver – September 7

Daily volume shrank and came below average. Daily breadth was hugely positive

Yesterday, in a post at Market Time Premium, I said

“.... the negative breadth of the day. It was as if the rally was being sold or shorted. If price can hold and press higher, those who were selling today may be cornered into a squeeze for a romp. If index fails, the shorters may just gang up on the index. So, it is very important for the index to hold it and at the very least not give a lower low below 1135-1140″

And

“I may be wrong, but do think that there was some selling today and depending how index holds and performs, the sellers may be used for a push up.”

It seems like I had read it correctly, whoever it was selling into price recovery of yesterday had to run for covers today

Now the shorter term technicals are overbought. If bulls are really in charge, they should not give much back whenever a pullback comes to relieve overbought conditions

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