Market opens the year in true style with a gap up and go into a continuation BUY signal at 2686.
The extremely bullish nature of yesterday carries a warning with it as Put/Call ratios drop to a low not seen since December 2016 and suggests some element of panic-buying as well as short-covering.
Today is another pulse high, and so we might expect only a little follow through on the current buy signal, and the Osc oscillator sits just above the Sell signal level still suggesting that we will not see significantly higher prices, yet.
And so, some caution still remains, but with further upcoming projections from the T structures for tomorrow and Monday suggesting that we may also see another peak shortly, and another echo high early next week, perhaps to bring in some selling afterwards. Expect some choppiness and some volatility.
Be prepared for whatever is coming next, and trade with confidence:
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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.