The market is in very strong hands right now. Unlike the rest of us, the black boxes are never governed by the law of large numbers. Their funding is unlimited. You, mutual funds and everyone else can sell and the market will still go up until some exogenous event rocks the market for a while or until the capital markets are finally destroyed. With black boxes in control, the principles of technical analysis work almost in reverse. A rally like we are currently experiencing, with very poor internals, won’t end as so many expect. As long as volume remains moderate to light it will be squeeze, squeeze, and squeeze indefinitely. Sentiment can be bearish or bullish and it won’t matter. As far as market direction is concerned traders don’t matter, nor do most hedge funds. Supply will never exceed demand until the entire system breaks down. Why? The black boxes have unlimited funds. The more traders there are short, the fewer funds the black boxes have to use anyway.
The black boxes have an additional advantage in knowing that you the technician will place stops and follow established theory. That is all part of the algorithms the black boxes use to exploit the market.