Naturally when all the primary targets have been hit, and hit quickly, the logical question is “what next”? More often than not, what’s next is a pause or pull back.
From this morning’s transcript:
11:32:09 Mike: One last comment—YM is running up right here into the next big target. Its done everything we could have wanted over the past week; now, if it manages to push right back into the range above and actually hold there, it will have far exceeded expectations but also changed the game somewhat from “bounce in declining market” to “potential resumption of the longer term up trend. Given all that is at stake you can expect fireworks of some sort today or in the next few days.
If we were to draw rising trend lines underneath the lows of price we’d be reminded just how fast price has bounced from January’s lows, with very little in the way of retracement along the way when measured on a large time frame intraday chart. If a pull back is to start, this seems like an opportune time as any given the overhead resistance on YM/Dow and NQ/Nasdaq 100.
Unless the morning’s lows are broken I am not going to get aggressive on the short side; and until that time I’m also likely to keep holding open positions established early Friday morning.
05.02.08 12:16 #