Wider the base, the bigger the space. Was taught that once. As we see this huge accumulation play continue to move up after passing the sideways range at about 1130. The whole thing developed from May to September. The July low was the final stage of the accumulation where bullish momentum was set in.
The low volume has been doing their magic on the market continuing to push the market using the monthly trend. The daily has become more bullish in its underlying. However there is still more work ahead. The daily is a smaller bucket than the weekly. Which means what?
It must overcome the negative divergence being enhanced by the daily’s move. The low volume pops essentially feeding the bearish wedge of the weekly.
What does the sage know about the potential of double dip recession. Warren Buffet was said to have said that there will be no double dip recession. Should the daily sustain its bullish run, it may defer the possibility. The technicals will be satisfied in some way. Maybe another fat finger day. Computer glitch!! Like I’ve said before, it is in the market’s best interest to move sideways for some time and build bullish momentum. The daily outlook has been changed but the weekly has not. What will be interesting is how fast we can get to previous weekly high. If we do get there too fast too soon, then a major correction will occur. Driving up the price and establishing stronger support and resistance on the way, will help put technical stops in place. For example 1103/1104 and 1120/26 area.
There was this dumbo in chat, the other day. He wanted to know what the “news” was that caused gold to sell. I tried to explain to him that there was distribution that set up the intraday sell. Then the dumbo says…”gold has been accumulating since April”. LOL dumbo. You can’t ask about intraday fluctuation by using daily weekly view.
The point is, to make proper decision about your trade or your analysis of the market. Always understand how what is happening now relates to a higher time frame out look. We were bullish and then it sold off. Why? Its the fed!! Its the news!! Don’t be a dumbo referencing the wrong time frame. Oh by the way did you catch the google pop the other day. Did you know it popped because they announced their auto pilot car? I wish I knew about it before.
Interesting similarities in the daily chart of google and es. Accumulation targets what again?