Today was an outside day, as was yesterday. Consecutive outside days create a tight trading range. If tomorrow is a bear inside day, it would be a sell signal bar in an overbought daily and weekly bull trend.
There is a 70% chance of profit taking over the next few days and a 30 – 50 point pullback. The selloff at the end of today might be the start of the profit taking. The bulls want the rally to continue up to the all-time high. Because the daily and weekly charts are so overbought, it is more likely that there will be profit taking and a pullback over the next week. There is only a 30% chance of a continued rally for 2 more weeks without at least a 30 point correction.
See the weekly update for a discussion of the price action on the weekly candlestick chart and for what to expect going into next week.
