The bulls were anxious to get a rally started as they didn’t even wait for prices to get into the gap area of 1016.5 -1018.5. Friday’s low of 1019.95 was apparently close enough to declare the gap as support, and we had a fairly strong up trending day on Monday.Holding at a support level is only the first step in proving that a deeper correction has not started. If the bullish camp is to regain control of this market it is imperative for them to move price back above resistance … on the weekly chart that is at about 1066-1071. The daily chart shows a resistance zone from 1052-1056.
Bottom Line: Even with a rally this week I will remain in the bear camp over the near-term. It will take a move above the September 29 high of 1069.62 to get me to even consider turning bullish. Let’s see what the bulls can do. The point where I would say the bull run from March is in trouble is currently at 978.51.
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