After the bears failed to move price below the 923.85 level on Monday it allowed the bulls to “hang on” to the idea that the rally from the March low can extend even further. Yesterday the bullish camp built on this idea by keeping prices slowly inching higher and we ended with an uptrending day. It seems the bears just can’t get a “paw” into the game.
A break to new highs today (above 951.69 set last Thursday) would mean that I have misidentified the price pulses. As with Elliott Wave, it is beginning to seem as though the price pulse analysis is most useful in confirming the price action rather than guiding expectations. As posted last weekend, the bottom line is that the weekly chart was only showing *potential* bearish divergence on the technical indicators. Until there is an actual signal the trend is up. Oftentimes I get too wrapped up in the nuances of every little move and trying to divine each coming price squiggle. I over analyze.
On the daily chart the fact remains that a technical “sell” signal was generated on June 3. However, this signal was not aligned with the weekly chart and was not accompanied (within four price bars) by a DeMark exhaustion signal (TD Sell Setup, TD sequential or TD Combo sell).
As the orange lines on todays chart show, the trend is up. And at 7:30 EDT the futures are strongly up. Instead of anticipating “sell” signals I need to wait for them to occur.
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