Software Anything But:  

If I had a dime for everyone I spoke to who is bearish, I would not need to trade. And yes plenty of “evidence” suggests a meaningful pullback could be upcoming. Seasonality has been discussed ad nauseam, breadth being weak, new 52-week highs struggling, negative divergences, etc. I think you get the picture. And to be frank I have been skeptical if this rally could continue. And to be honest all of the above-mentioned worries, none of them matter, zero, until PRICE confirms. It is the essence of technical analysis. Below is the daily chart of software via the IGV, and yes there are some dubious candlesticks in there including a doji on 1/26 and some hanging men the last couple of sessions. Now something that would get me bearish is if we witness a break BELOW the bull flag, as we know from FALSE moves come fast ones in the opposite direction. My inclination, and remember the market could care less what I think, is that this breaks higher just for the simple fact that so many are on one side of the (bearish) boat. But I am happy to wait for PRICE confirmation to direct me in either direction, long or short. Sometimes doing nothing is the best trade until the signal reveals itself. 

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