The market players let the market really drop in the opening hours after an AH test of the highs was once again rejected. But as I stated in yesterday's post, the big players came in right at key support and stopped the fall in its tracks. The rest of the day was spent on another run up towards the weekly highs. I guess tomorrow we'll see if the market can break out of this weekly range (which is basically the same range as last week) or if it is going to rollover bigtime. Based on what I'm seeing during the globex market we could be in wave 4 territory tonight. Wave 4 support comes in at 1202/1204 with our wave 1 high at 1198.5, so the bulls need to definitely stay above that number.
Any break of today's low should send the market's down hard for several weeks. If the bulls are going to take back control, then we need to see a drop in volatility as that has been the hallmark of this bull run.
It is interesting to note that when we got our ATR sell signal back in January the market played in the same range for another 4 days before finally rolling over. Tomorrow is day #4 since we got this signal. A repeat??
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