What a show of strength this week! We are sitting well above the intraday hourly channel (see image below) and the upper trendline now appears to be support. We have another level of support below the upper trendline at approximately 1970. We are getting extended but these rallies often exceed expectations and can be bigger and longer than the current rally.
The chart below is a comparison of past rallies on a weekly chart. The point counts are not precise (hand drawn trendline) and for some reason the bar count is short by one day. The current rally is about 188 points long, and as you can see, there were three other rallies in the past couple of years that were bigger. At this point, I would be shocked if we didn’t crack 2000 at least for an instant. With the NFP announcement coming tomorrow morning it’s a great opportunity for at least a spike up to run stops.
I have been looking for a run to 2000 since the strong start to the week, but paradoxically, I never re-entered long. Luckily, I have been patient and have not forced a short trade. My “feelings” and logic are in conflict right now. I want to go short but doing so before any sign of weakness would be foolish. I also want to re-enter long due to the strength of this move. Best I just sit on my hands and do nothing for now.