A sideways action after a big bounce

Markets have settled in to sideways action after a big bounce. The extremely bullish breadth readings few weeks ago pointed to this.

 Many stocks that made a big move in the bounce are going sideways and setting up for next up leg.  In the short run the sideways move might continue for few weeks.


Extremely Bullish readings on breadth

We are looking at some of the most extreme bullish reading on breadth in last few years. It shows the powerful buying surge post Trump election.

In short run a consolidation/pullback more likely as market digests this surge. After a orderly correction more upside likely for next couple of quarters. 


It can bounce but it can not sustain


For last 2 year the market has had 4 big bounces after a correction but each of the three times the market just went sideways after that.

This tendency has persisted since 2014. Will it be different this time?

This inability to build on bounce results i n just one leg rallies in many stocks on both bullish and bearish side.