As expected IP not only fell to bottom to support (see my last post) but quickly rebounded on solid volume. Wasn't expecting a 5% day but it was on a sector rotation day.
Note that the Bull pennant formed now has a clear separation from the red line downtrend. Still has closed below the key horizontal resistance at 37.35 which was the April high.
Note as well that there was an earlier bull flag created on Aug 14th which broke down right away. So the one forming today is not a guarantee that we will break out.
On the daily Chart.
RSI has touched the Resistance line, A break of this has not happened since the peak in June. MACD is coiling but not really showing much. Note that the 200 MA is above the PA now and will likely act as resistance. A break and close above 37.35 is the key move. We will need another strong day for industrials and overall market breadth.
I took profits on 1/3 of my long positon which I had added to Friday. As well I actually hedged my long position here in case we do see another retreat for today's big uptick.
Note that the Bull pennant formed now has a clear separation from the red line downtrend. Still has closed below the key horizontal resistance at 37.35 which was the April high.
Note as well that there was an earlier bull flag created on Aug 14th which broke down right away. So the one forming today is not a guarantee that we will break out.
On the daily Chart.
RSI has touched the Resistance line, A break of this has not happened since the peak in June. MACD is coiling but not really showing much. Note that the 200 MA is above the PA now and will likely act as resistance. A break and close above 37.35 is the key move. We will need another strong day for industrials and overall market breadth.
I took profits on 1/3 of my long positon which I had added to Friday. As well I actually hedged my long position here in case we do see another retreat for today's big uptick.