Trading the Line

Difficult to be sure if this is a a minor pullback in an uptrend or if this is the beginning of a strong bear move.
Watch for support if we get down to the 1950s.

Now looking more and more likely that we are heading for a top around 24 March.
Measured move of W formation targets 2050-2084.
Need to navigate the 200 MA first.

Important inflection point above at 2025, if reached, site of 200MA.

The next few days will be critical, much more strength and new highs become likely, weakness here and we could be challenging the lows again soon.

Certainly overbought with NYMO, CPC and CPCE all reading levels associated with short term highs.

A pullback to the 1950s would make lots of sense, allowing the bears to unload more short positions.
Maybe not yet though.

Nothing to suggest that we are there yet, but another arm of the split T structure complete and lots of implied resistance in the 1990s.

Wow what a day, a huge short covering rally after the 'sell signals' on Friday and Monday.
Too many bears.

Interestingly we are now above the gray channel and at the upper bollinger, so a pause and perhaps even a pullback may be necessary.