The area that is attempting support is yesterday's high. I find that intriguing. Plenty of time left today.
Excellent cash close there. We held on to a good bit of the prallen and the daily chart indicates that the uptrend is intact. The fact that the market was able to sustain this quickness and close strongly is further confirm of the uptrend. My thoughts continue to be towards the long side. One other item of note----2600 as a new short term floor is an idea that had a lot of credence added to it today.
Agree in the short term however at some point in the coming weeks to few months we'll need to cycle down again to test for the higher low... at a minimum. 2500 seems about the most conservative target I can imagine for that, even if it doesn't develop into an extended bear, but at this point looks like we're going to hit 2700 first.
With their history of running this up, and back down again, I'm not betting on anything here. They could take this down to 2610 again, or whatever. I don't trust this run yet.
You're welcome. Please let us know if you discover anything worthwhile. I will take some time to properly backtest it myself. In my opinion, it can both be helpful and deceiving/confusing. Not every signal/divergence is as clear as on the chart I posted and not every divergence is useful. I don't think NQ always leads either. I think the correct approach would be to rely on ES if that's what you're trading - and receive additional confirmation/confidence if NQ agrees. Jack Hershey and his disciples claims that YM leads the ES.