I'm waiting for a breakdown, or capitulation. I think one or the other will reveal itself by the end of June. So, I don't think sideways is likely. I think this is a critical time because of the sell in May mindset. If the market can continue to rise here, in the face of pretty tepid economic data, especially in May and June, I think it will bring about capitulation. It will be an extraordinary 48 days or so. (I do think regardless of what the overall markets do, there are some overextended sectors setting up nicely for some heavy shorting - mainly commodities).
Sorry. For the bears. If we see a continued ramp through the end of June, I think there will be capitulation buying. I think some people are still keeping a lot of powder dry waiting for the summer sell off, especially given the quick and deep move up since both last June and since the Feb 27th selloff.
I don't know anyone crazy enough to try being short on a Monday. Isn't that the definition of capitulation?