Bulls Have to Learn Their Clichés

On the back of an exhilarating rally yesterday, this morning's opening gap higher smacked of, perhaps, a near-term trap to slow down bulls who were assuming an immediate return to the penthouse for a new market uptrend. 

That new uptrend may still materialize, but as we are seeing with an early small cap fade in the IWM it is likely to come only after bulls have been put to the test a few times first. 

In other words, buyers must show an ability to do something which seemed to have eluded them in the month of May--Step in with sure hands to scoop up market dips and keep a firm floor underneath this tape. If they cannot do that, then yesterday's rally will fail to serve as a silver bullet or some type of panacea. 

Inside Market Chess Subscription Services, we have our eyes on the $149 level on IWM as a logical first backtest area for buyers to show up if they mean business. Of course, seeing tech hang tough is a plus, as QQQ is hanging onto green as I write this despite another poor open for GOOGL.

However, in lieu of talking a big game on this bounce attempt about a short squeeze up to 3200 on the S&P, for example, it would behoove bulls to stick to their clichés about just trying to improve the market one day at a time.