Bulls Win, But Not So Fast

So on the after hours we have broken to the upside the next step would be a daily close to the upside. This is Bullish make no mistake about it. However, where are we really going to go 3050 is only 3% away. Remember the longer term charts are still very bearish. We still have the potential head and shoulders forming along with a long-term Megaphone pattern that so far has broken to the downside. I would not buy this breakout rally yet; we are overbought on short term and have bearish divergence, I want to see more evidence for the bull case.

There are three potential scenarios:

* Trump tweets something and the breakout is sold off and they open the trap door, or some other negative news it proves to be a false breakout. More potential evidence is the fact that we are overbought on the short term charts and have bearish divergence.

* We slowly move up for the next weeks / maybe months but will eventually be sold off.

* The Megaphone proves to be a false break to the downside and we break out to the upside and go much higher- 10% or more above all time highs.