Recent rally has broken classic retracement levels of a bear trend and it now looks more likely this may be a bear trap which is coming to an end (Or a deeper correction inside of the first bear drop). Bulls should be able to hold above 4350 or so if they are strong. Ideal buy would be a retest of 4770 area with stop a just under 4350.
Move would typically take us back up to 4400 at least and potentially (And I’d wager a bit more likely) a run to 4500 area (A previous spike out risk mentioned in previous newsletter).
The momentum of either a corrective bull move in a bear trend and a bullish spike out in a developing bear top would be exceptionally strong in this section of the move. As would a bull trend move generally be. So if the bulls can hold their break of resistance, strong momentum is likely.
Further analysis and trade plans in Part 2.
dd