A parabolic move, so it looks like Goldman was right (haha).
Price target of 2225-2245 acheived, all of a sudden and begs the question – what's next?
Notice the series of rising lines – Gann projections – from previous highs and these are potential resistance and target lines.
Market cut through the previous resistance line like butter and also breezed through the 2nd one, presenting the next as possible targets if this move is sustained. The 3rd line is 2256+ and the 4th is 2272+.
Market is now well above the upper bollinger line which is unusual and potentially unstable behaviour.
Remember the rapid sell off last time that happened.
We are in the window for the next Echo high sheduled for today but they are +/- one day.
There is an Arms sell warning in place and yesterday the equity Put call ratio reached a level well below that associated with complacency and market tops and therefore is also indicative of too many bulls in town.
This doesn't mean that the market will go straight back down, but watch out below when the music stops…
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