Yesterday
We can clearly see how our bottom has formed on Friday. V-bottom with the exhaustion gap I was hinting at to finally break the current trend on the short term. The dip in the afternoon provided the traders on the sidelines with a great opportunity and everyone wanted to get in on this rally in the fear of missing it. A lot of money was made yesterday but looking at it from the big picture perspective we are back to where we were mid last week. We need to ensure we continue on the upside with high volume to sustain those gains. We had less volume yesterday then any of our previous days last week so we need to watch it here carefully.
Today
As we are up premarket we have some room left to go on the upside. Yesterday I said we will rally till 1070 and that will be the game today. I expect huge amount of resistance at this level and I believe we will not be able to break this number today. Watch the sell off that will initate at this level.
Time and Price
As the market is still trading irrational numbers again are light. 1070 is what we need to watch today. I would expect a test of this number at least once after we have initially reached it.
Mid Term
1070 represents the 38% retracement from out May top to Fridays bottom. From a big picture perpective every rally we have had from our previous lows has declined in terms of retracements. A break of the 1070 will bring us back to the 1140 levels.
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