Tuesday, December 22, 2009

Bulls pushing higher...

Well, so far no move down. If the market continues to ignore this divergence, then you should expect another big gap and run to the upside. Any gap up that closes would likely signal that the market has decided to respect the divergence and should push the RSI(5) into oversold territory.

As of now there is no obvious completed pattern as the market looks like it might be putting in some 1-2, 1-2 pattern either up or down. I would say triangle but it is appearing so high that it throws off the 'look' of the chart. Once it resolves one way or the other I'll worry about labeling it.

Upside buy trigger: 1120 with a target of 1133.
Downside sell trigger: 1115 with huge bearish possibilities.
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