Clues – I Got Clues
Interesting thing happened today… we tried to go down, and reversed painting a hammer candle, which as we all know is bullish.
Now we are at major trendline resistance, the move is long in the tooth, and to my eye it looks like a simple short squeeze without attracting fresh buyers. That is the big question… did the short squeeze from the breakout of the triangle pattern bring in enough fresh longs to achieve escape velocity?
Everything changes from here if we go up and stay up. Its long all the way if we go a little higher.
Given that the high is unretested, and the hammer candle which by definition represents a failed attempt by the bears, the odds OVERWHELMINGLY (like 80% IMO) favor an ATTEMPT to drive the market up.
Here is where it gets interesting. This trend looks ready to stop right here right now. If we go up today, WITHOUT making fresh highs, that would paint a RETEST VARIATION SELL (look it up). That would be an OUTSTANDING short.
As an intraday play. I would look for a reason to get long early (a small gap down would be a good play) and hold it until we get a zero lite divergence.
If you want more clues, look at the way bonds turned before equities. Now take a look at the story each days price action is telling.