Gassed

We have run up for 100 straight points in 3 weeks, the market has finally hit a barrier that is more than a speed bump.  Sometimes pullbacks come out of nowhere, but usually there are some signs.  The weakness overnight from European equities was a warning signal.

Here is the problem though with looking for a big pullback.  The market spent a week trading from 1111 to 1126 before finally breaking out above 1126, or SPX 1130.  That provides a base of support.  Now SPX 1130 has supported this market on its first down draft.  I don't see how this market will go down to 1111 or lower without first trading between ES 1126 and 1143 for a few days. 

During this trading between 1126 and 1143, those that missed the upmove and don't want to wait will get in.  Also, you will have some nervous profit taking for those waiting for higher prices as the market stalls out.  Only after these trades have gone through and time has passed will you get sharper breaks.  At that time, time sentive traders will take a back seat to price sensitive traders.