Bullish momentum has continued since last post. PMO continues to rise and has expanded over last two sessions. RSX has cooled off a little bit and turned upward again. I see two potential scenarios playing out here:
First, the market run continues and BL, without any resistance above, keeps closing the gap on its ATH of 58.15; a positive surprise on ER would probably launch into the 54-58 range. if this happens, the RSX will become severely overextended, and we would probably see another precipitous drop around the current ATH. Alternatively, BL pulls back to SMA200 and hovers around there (between 0.382 and 0.5 fib levels), consolidating in a lead-up to earnings. With positive ER, a golden cross would follow soon after and signal a renewed long-term uptrend.
Monday should give us a cue on which scenario will play out.
Disclaimer: This is only opinion. This is not investment advice. You are responsible for your own trades and conducting your own due diligence.
First, the market run continues and BL, without any resistance above, keeps closing the gap on its ATH of 58.15; a positive surprise on ER would probably launch into the 54-58 range. if this happens, the RSX will become severely overextended, and we would probably see another precipitous drop around the current ATH. Alternatively, BL pulls back to SMA200 and hovers around there (between 0.382 and 0.5 fib levels), consolidating in a lead-up to earnings. With positive ER, a golden cross would follow soon after and signal a renewed long-term uptrend.
Monday should give us a cue on which scenario will play out.
Disclaimer: This is only opinion. This is not investment advice. You are responsible for your own trades and conducting your own due diligence.
