Yesterday's high becomes today's low as the market stretches higher with barely a pullback in sight. This is catch up quick behaviour as the market proceeds higher without hanging around waiting for the bystanders, and is, I suspect, playing noodles with those insisting on selling short because 'we must have reached a top'.
We may find some resistance here – on the rising line from the 1 March peak – but really there is no fundamental reason why the market should stop here, and the upper extreme* reaches of the channel are now looking very attractive. Note that the February move into the 1 March peak was a 100 point near vertical move into the upper extreme* of the channel where it stopped.
In the meantime we have a projection for a high today from the large T structure, but this is just the first in a series of several that I am projecting from the June declines. This suggests a continued grind higher with perhaps a few pauses or pullbacks until we see a point of exhaustion or an important target is acheived.
*The upper & lower extremes of the channel are my approximation of Terry Laundry's proprietary Energy channel.
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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.