Another active day in sweeper-land Thursday .. A bit more protection today than we’ve seen in recent days but that’s expected with most cyclicals squeezing higher in a straight line .. All eyes on next week at this point & its a biggie dominated by central banks .. One thing I wanted to touch on this evening is short-term sentiment .. We are at a eerily similar spot to the one at the start of the year, as we were coming out of a major correction .. Markets squeezed hard, breadth was broad & sweepers were extremely active in a lot different names .. Back then, we reached a point where short-term sentiment heated up & markets were “obviously” overbought. What we started to see develop was everybody expecting/positioning for a pullback .. Tactical bears were positioning in the short-side & bulls were positioning for weakness just by simply waiting for a better entry off a drawdown .. All while fund exposure remained extremely light & players had very little to sell .. What usually happens off a setup like that is the market will basically just sit & not do much at all .. Sometimes it can come with either a slight bullish or bearish bias but if there’s much of any weakness, they find away to just sneak some in.. Now, I’m not sure we are at the exact point yet as last year’s correction was a lot more damaging emotionally.. The point I’m making here is be careful jumping the gun & allowing yourself to get too bearish, too quick, just off some short-term sentiment heat .. That can get washed out quickly these days & if we do get a little weakness to cool things off a bit, that likely will set up another great long entry if positioning out there remains so light .. Keep in mind, the most recent market pullback we had started with basically hedge funds going “all in” into the highs .. And as you probably know by now, that is definitely not the case currently, especially when it comes to any rotation exposure.. So, let’s see where we stand as we head into the FOMC next week but by the looks of this chart below, any potential weakness could be an early gift from Santa👇🏻