The US market has made the significant rally that was expected off the lows. The target was always the 200 day MA for starters and last week this target was essentially reached. I did not think it would happen this fast and this straight of a line, but the market doesn’t care what I think.
We are now overbought on momentum and I believe THIS AREA is where the continuation of the trend will be decided. ‘‘Tis very possible to chop in between the 2650 and 2800 area for multiple weeks. I believe the best case for the bulls is some sideways action and consolidate this move. Bears really want to hammer this down as quickly as possible here to not give the bulls anymore momentum.
2810 is still the massive area to be LONG LONGTERM and we have not made it there yet that is why this is Neutral to Bearish in my opinion. Bulls have the ball and punched the bears in the mouth here…let’s see if the Bears punch back this week.