The bulls did indeed win yesterday as they rallied hard all day long. Glad I was leaning bullish and not bearish... LOL! So what does it mean for today? Usually "consolidation" happens after such a large move up. And since the futures are now back up 5 (was pretty much flat a few minutes ago), and were even up 6 points or so last night, I'd have to think today we'll see mostly sideways movement with some more upside yet to come later in the day or even on Wednesday. It's not something I'd try to trade here as there's no strong setup yet for the bears, nor any guarantee for more upside on the bulls.
The big move was yesterday and today and tomorrow the bulls will battle hard for extra ground. It's pretty clear they want to revisit the prior high last week around 2817, which I don't know if they will bust through it or top out just below it... but "try they will". Regardless of whether they fail to get through it or do pierce it another pullback is near. This one should be bigger then the recent 90-100 point drop we had last week, so that's what I'm focused on right now.
I suspect it will appear by this Thursday or Friday. I'd like to see the bulls grind up a little today and tomorrow with positive closes on the daily candle to give the bears the best chance of a drop. I don't want to see the bulls take a day off and let the market close down as that would reset their chart enough for another 2-4 days of upward movement. Remember that a red close in this case is like giving the bulls a first down in a game of football. Keep them pushing but not gaining much ground is the name of the game for the bears. Let them gain small today for their 3rd down and small tomorrow for the 4th down. Then they have to turn over the ball to the bears. Anyway, that's my thoughts for today. Go Bulls!