After a good job report last Friday, the market took the good news and rallied. Many market participants were looking for the market to drop on a good job report as it will increase the probability for the Fed to taper. But as in most if not all instances that when the majority is leaning on one side, the market will go to the other.
Yes, there is no questions about the market is over extended and needed a pull back. But as many market participants are waiting for the pull back, the market most likely will continue to move higher. The market will frustrate those dip buyers that are waiting for the dip to the point where they will simply chase this market up. Therefore, until the market has shown sign of exhaustion, continues to trade defensively on selective longs, do not chase.
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