I noted late Monday night my confirmation that all pullbacks were to be bought and no significant down moves would take place in the near term. This pertains to swing trading.
The expectation here after y'days bull run is for a volatility suck into quarter earnings for major US companies. What does this mean? Think February of this year. Low range trading, a slow churn up, a few quick random sells that are bought. Slow, bore you to tears, day after day.
If this plays out, the defining perimeters (besides lower ranges in price) will be seen on breadth charts: you will see a much narrower range between advances and declines. If you follow a MCO on a lower, say hourly timeframe, you will see breadth move above zero, go down a little, move sideways, go below zero, move sideways, go above zero... etc. Contrast this to market conditions where breath moves from harshly oversold/overbought and then up/down in more of a escalator shaped pattern.
Anyway, that's the blue print. Market conditions can always change, and so can my thesis. That said, I am right a lot