After almost a year of accumulation below the 160ish high, the accumulation was ended with a Terminal shakeout on massive volume. That probably washed out most of the longs. We tested for a while b/w 120-130, hit the market on 6/24 to get out any last longs. Then the bull rally started.
I drew the modified schiff off the terminal shakeout because that's most likely the point where the goal to reach above the major old swing high was established so naturally the people that helped cause the selloff and accumulated there would be bulling the market in their behavior/style for the next phase.
Now we've been extending hard since 2-13 and we've made an excursion out of the UMH which means a change of behavior and lot of emotional enthusiasm. Then we get a hard down day to retest the UMH.
I'd like to see a break of the UMH, retest from the downside and drive back to the ML, gap zone, and previous swing high. I'm waiting though because Momentum can continue to carry price into excess until it's broken.
Just watching for now, seems to be setting up nicely.
I drew the modified schiff off the terminal shakeout because that's most likely the point where the goal to reach above the major old swing high was established so naturally the people that helped cause the selloff and accumulated there would be bulling the market in their behavior/style for the next phase.
Now we've been extending hard since 2-13 and we've made an excursion out of the UMH which means a change of behavior and lot of emotional enthusiasm. Then we get a hard down day to retest the UMH.
I'd like to see a break of the UMH, retest from the downside and drive back to the ML, gap zone, and previous swing high. I'm waiting though because Momentum can continue to carry price into excess until it's broken.
Just watching for now, seems to be setting up nicely.