Today had a very strong rally to above last month’s high. This triggered a buy signal on the monthly chart. As with any extreme climax, there is a 50% chance of follow-through buying in the 1st hour tomorrow, and a 75% chance of at least a couple of hours of sideways to down trading that begins by the end of the 2nd hour. An obvious target for a pullback is the bottom of the channel that began with the pullback after 9 am today.
See the weekly update for a discussion of the price action on the weekly candlestick chart and for what to expect going into this week.
