As I expected we are getting resistance again on the rally to where the 50 and 200 day converge. On the other hand the last 3 days, looking at hourly bars, is creating a possible reverse head and shoulders. The 50 day 20 day convergence is strong resistance. This tells me that if we do break above it the move above could be strong and fast and surprise people. If the market generally holds up or even goes sideways, I have a feeling that we could get that surprising move. I'm reloading a little today on anticipation of that. Here is why I think we could get that surprise move:
1. That institution that has taken a big stake in NE signals that you could get institutional buying that will overwhelm the smaller sellers.
2. The positive high volume reaction after earnings
3. All we need is a few days of people getting bulled up (small sector shift) on Oil and Oil Services.
Countering this argument is the concern of the straight up market and potential sell in May which of course could start early if institutions believe it will happen and begin to lighten up ahead of it.
it keeps hitting that 50 day and getting pushed back down, but it sure looks like it wants to bust through it, the overall market bulling up again too, if it gets through 37 I bet your right about the strong move up Chute