The market took out the 696 pivot setting off a massive rally from short covering, traders and the like. The bad news is that it looks like the market is going to the 740-750 (previous lows) in just two or three days, which isn't as bullish as it seems. This level is the line in the sand as far as technicians are concerned. 740 also happens to be the target the corrective wave 4UP before the 5th wave down comes. Other people propose alternate wave counts taking this corrective wave up to as high as 1100, but I'm working off a different wave count which puts 740'ish as the possible stopping point. Any break above there, not resulting from intervention, and I will reevaluate the wave counts. It wasn't until after the next move down was I looking for the bigger rally. However, it's not up to me :)
Yesterday I mentioned not to load up on the long side based on how it closed. This is neither a bullish or bearish recommendation, but neutral. Until 740-750 can be taken out with conviction we must stay on guard.
Thurgy also mentioned to wait for oil until a pullback to $45. Yesterday we got that pullback but I have yet to take a stab because I'm going to wait until after everyone else sells the OPEC news which could bring it down to 43.50 perhaps.
