That's Bull!

Yesterday's uptrending day put to bed the RSI question. We now have a confirmed technical "buy" signal on the daily chart. Yesterday's action has also formed a CIT (Change In Trend) in my work at the low. All of this is evidence (if not quite final proof) that the Elliott wave down from the high is done.

Since this wave was a five wave structure we should look for a counter-trend move and then a resumption of the decline. One place to watch for the counter-trend rally to end is at Fib retracements. Yesterday's high almost hit the 50% level and was stymied by our short term moving average (in red). Another key area of resistance is in the 1505 area. Here we find a Fib retracement line, two moving averages and the 180 degree Gann target up from the bottom.

We'll monitor the developments while we sit on the sidelines.