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A thought after the news...


Clearly, an employment report that was worse than expected coupled with the resignation of the Treasury Secretary has led to significant weakness in the futures.

Over the course of the last few days, I have been beating the "pullback" drum because the market had become too extreme to the upside and the feeling that the fundamentals were improving was too strong, especially because this countertrend rally has been led by non-fundamental factors like performance anxiety and asset allocation switches.

The weakness over the past few days has been enough to alleviate very near-term overbought condition and I would now anticipate a rally back to last weeks high - despite the news backdrop today.

Don't misinterpret me though, that doesn't make me bullish because I continue to believe that 95% of the gains are behind us and that any move higher - even if marginal recovery highs are made - is likely to fail. My main point is that after getting the pullback I expected and working off the overbought condition, it doesn't make sense to be a seller here. At higher levels, that would not be my view.
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Whoa nellie
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