I seem to be on a roll of missed calls lately as the market ripped higher all day yesterday and put in a new all time high... which I wasn't expecting. This morning we see the futures up a little more but they look pretty tired now so I am expecting a little cooling off before any other push higher. The 1hr RSI got quite overbought yesterday but it was supported by the 4hr RSI still pushing higher. This morning the 4hr RSI isn't yet overbought and going sideways currently.
I suspect it will do that all day to allow the 1hr and 2hr RSI's to reset. So today is more likely to be a range-bound day I think. Bulls want to hold the 4450 area where the purple rising trendline is at, but really they don't even want to give up the gains they made yesterday with that 40 point push higher. So they should try to hold above 4460 or so I think, and I suspect they will. I base that on the 4hr RSI still having room to run higher, so I think it will put a floor on hold much of a pullback will be allowed by supporting the 1hr and 2hr RSI as they reset.
Today might be one of those times where we stay in a 10 point or so range all day long. As for the bears, they need to take out 4450 of course, but I doubt if they can do it. Bulls are in control now (not a surprise really... LOL). As for Wednesday I'd lean toward another push higher due to the 4hr RSI still having room to go up more, but that really will depend on whether or not today the bulls hold their ground. Have a blessed day.