August settled back below the March high's and within an 8-month Balance which led me to conclude that perhaps it was a breakout failure - my conclusion was wrong as we had NOT stopped 1-timeframing higher on a monthly or weekly basis - which is the first sign of change in direction. The next upside monthly reference is 1441 area.
Thursday was a breakout from a 2-day balance and delivered a trend day up on better than average volume. As mentioned in yesterday's blog - I thought the market was very short. Following the ECB announcement and strong ADP number the market gapped up and never looked back. The profile suggests that there was fair amount of short covering today. For tomorrow - I would look for some sideways to higher price action as the market digests all the news. The previous monthly high at 1424.75 now becomes short term support support.
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