All Trends are UP! See the bigger picture monthly chart below. Since we broke above the Oct 2007 highs, we have been rallying for 16 months straight. Regardless of whether you like this market or not, one has to trade on market generated information.
If you look at the weekly chart as well, it shows the market breaking out above a 13 week balance (1796 - 1892) at the end of May. Since then we have been rallying for 5 weeks straight. I am going directly to the Profiles next - see below. On July 3, the market gapped up on a short holiday session, left a poor high without tagging the prominent POC at 1967 below. Poor highs can mean 2 things (a) the market is too long (b) an incomplete auction i.e. market has to auction higher before sellers step in. The profiles show no Excess at the highs.
However, there are now 5 prominent POCs below Jul 3rd's Close that have not been revisited. This usually is a sign of a market that is getting too long in the short term. Coming into the week, if there is a liquidation break, take it one reference at a time:
If you look at the weekly chart as well, it shows the market breaking out above a 13 week balance (1796 - 1892) at the end of May. Since then we have been rallying for 5 weeks straight. I am going directly to the Profiles next - see below. On July 3, the market gapped up on a short holiday session, left a poor high without tagging the prominent POC at 1967 below. Poor highs can mean 2 things (a) the market is too long (b) an incomplete auction i.e. market has to auction higher before sellers step in. The profiles show no Excess at the highs.
However, there are now 5 prominent POCs below Jul 3rd's Close that have not been revisited. This usually is a sign of a market that is getting too long in the short term. Coming into the week, if there is a liquidation break, take it one reference at a time:
- the range Gap at 1970-71.25
- the prominent POC at 1967
- top of 8 day balance at 1960
- prominent POC's at 1954, 1948, 1942.50
- the low of the 8 day balance at 1936.25
