NYAD NYSE Advance-Decline Daily Chart

The advancers and decliners show the uber bullish euphoria on Friday with a closing print above +2000.  As shown by the other red squares, prints this high represent off the charts bullishness and markets sell off to relieve the bullish pressure. A couple weeks ago, the bullishness was maintained for a day or two before reversing.  The snap-back may manifest as a simple intraday selling event, or it may last a day or four.

If Monday begins on the upside, this may provide an attractive area to short since the snap-back move should be imminent. If the markets begin the week on a down move (recent Monday's have been weak), then the snap-back move will already be in progress. Projection is for a 5 to 50 handle snap back move for the SPX to likely begin Monday or Tuesday, from this or a higher level (1360-1375). If the SPX pulls back down 5 to 10 handles, that will be enough to satisfy the high NYAD reading from Friday.  This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.