So apparently the FED can't see raising the rates this year. Markets proceeded to ramp higher. Everything seems to be good looking through rose coloured glasses. So with this we should be bullish right? Well our ST has been bullish for a while now and with today's abrupt move higher, we have a potential for a complete 5 waves. I was looking for a 3 wave pattern but overall the 2nd wave target that pushes price higher still exists, if it is a 2nd wave. On top of this analysis, we have also a neg. divergence occurring in the intra-day charts. I will watch to see if this signal does trigger a reversal down with the indicators moving into OS. Confirmation is key to all of this or else things are just basically guess work.
At this point, I do not see why prices would not revisit the 200 day MA. This however poses a series of question of whether price will move straight to 200 day MA target or pause (correction) before resuming a move up (making a 3 wave pattern). Unfortunately, its always a wait and see in the end when everything has formed before you can confirm and in some cases it would be too late for many.
SEN: Bearish
ST: UP
PA: NA
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