Market consolidated through Friday as anticipated. Sunday night sees a big see off and bounce, and by Monday morning it has lifted to new recent highs and the next Fib extension levels. Although the sell off and bounce resulted in an extreme move, we can see the market found support at significant technical areas (long term green s/r) and lifted to our target level. While the move may have been a surprise or seen as random market volatility to others, we can see it was technically perfect.
Pressure remains positive, potential for more lift. Expect reaction at the blue and purple Fib extension levels as we have been seeing all along.
Strong daily bar gives added support that the market has more lift to go. Indicators remain positive. Current bar has lifted the market back outside of the green channel, more indication of increased velocity and more lift potential.
We have reached significant technicals and could expect to see another pullback or consolidation. Retracing 1/2 of the previous bar is normal and this should be watched for. As well as the potential to move back in to the green channel; and even a break down from that. IF The market starts to turn we will see it as it movers through the technicals.
The bias at this time however remains positive, with consolidations / pauses / pullbacks expected at the blue and purple Fib levels.