Yesterday we saw the move down I was looking for but not as deep as it should have been. Instead it stopped in mid-air around 2680 where there was no support and never reached the rising trendline around 2675 where I would have liked it to go. But that's how the market works, constantly tricking you so you miss a long entry or short exit. Now the 6 hour MACD is trying to turn back up after falling from +9.6 a few days ago to +2.5 this morning. This can't go on forever as the rising two trendlines are in a wedge pattern and at some point support will give out and break the wedge. But for now the bulls have the upper hand with both the 6 hour chart looking bullish and this 60 minute chart pointing up as well. Where yesterday I thought we'd repeat the 12/2 to 12/4 pattern it's not looking likely today as this MACD is putting in positive divergence with higher lows, and the 6 hour one is hooking up as well.
Everything is looking good for the bulls today, so unless some news event scares them I just don't see any reason to be short. The rising trendline wasn't even hit and even-though it got close this morning it held and is now producing a rally up. It's getting close to Christmas now and traders are starting to take days off, leaving even lighter volume then what we normally see each day... and that always favors the bulls. I myself will be gone tomorrow (Friday) for my Christmas trip, so the bulls have free rein until the end of the year I suppose and the bears should just get some rest for January as that's their best shot to take on the bulls. Anyway, if I don't do a post tomorrow (depends on whether I have time to do so before I leave) I'll just wish everyone a very Merry Christmas and Happy Holidays. I should be back after Christmas next week but don't expect too much action in the market.
