Bottom line: I’m favoring the short side against Tuesday’s highs, looking for a test of Monday’s lows.

The indices are acting differently than in many months. We had extreme selling accompanied by the most extreme negative breadth reading in months. This was followed yesterday by the return of the relentless bid as stocks V bottomed and traded higher and closed almost top tick, accompanied by the most extreme positive reading in breadth in months.

For sure, the big players are active and moving around.

Don’t fight strength above yesterday’s highs. If the indices approach Monday’s low things could get interesting (volatile). It will likely be tricky around those lows.