Short Term Bullish
Yesterday: “We have gained some good ground in a few days, so a consolidation Wednesday would be normal.” The market did in fact consolidate Wednesday in a range just above the Resistance level I drew, so that is a classic case of Resistance turning into Support – AND we are now poised to reach for that upper short term resistance at 26,300 Thursday.
The Daily Chart continues to show the wide consolidation, with the market resting on 25,000 as mentioned above. The market continues to hold its bullish posture, but that could change with anything new entering the psychology of the market.
In the absence of gripping news, the market is behaving in a rather normal way, slowly gaining with the typical consolidations and small pull-backs on the way. However, there is plenty of uncertainty out there – this is still a news-driven situation. While the short term posture is bullish, I still think we are in for a wild ride between now and November. I would expect an up-move today to short term Resistance, followed by a minor correction Monday.