Seems to be the norm for end of day rallies to occur. Question is if today's rally happen to move back above a support channel. It is possible that the formation thus far since the Nov. highs have been forming a bullish flag pattern. Therefore, we need to see a rally soon or a break to see where sentiments lie. Tails being produced only reinforces that prices are aware of these support or trend lines as important. The important level is still the 1960 which if broken can cause a few headaches for bullish traders. Something to also keep in mind is that the intra-day chart is producing a negative divergence, so we will need for signals to push out of the OS range tomorrow for this divergence to be confirmed. For now, the signals are OS and possibility of acceleration is to the downside.
The entrance into OS in the last few hours of trading was more subdued than I would have thought, but since we are in the range, we could still see a continuation tomorrow. There is no right or wrong analysis here, but we do need to lay out the scenarios and plan for those that favour our positions.
SEN: Bearish
ST: DOWN
PA: DOWN
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