The sleepy lift higher that started yesterday was fueled by moves pretty much across the board. Up until last week, this latest run higher that occurred since the breakout back in the middle of May had offered little opportunity to get long. If you are of a bullish bent, then this could be viewed as that opportunity ... finally.
Not all longer term moves start out tepidly; but most and yesterday was tepid if considering volume. At the same time, not all tepid moves result in longer term moves. In other words, for this beginning to make itself into something more than just a failed bearish wedge, volume will need to pick up and more than 2/3rds of the decline would need to be recaptured. That would break the key resistance levels I pointed out in last night's piece. Until then, you have to view this bounce rather skeptically and if you are intent on playing the bounce, you had better have your foot positioned near the eject button as the need for speed on the exit could come at any time.
Not all longer term moves start out tepidly; but most and yesterday was tepid if considering volume. At the same time, not all tepid moves result in longer term moves. In other words, for this beginning to make itself into something more than just a failed bearish wedge, volume will need to pick up and more than 2/3rds of the decline would need to be recaptured. That would break the key resistance levels I pointed out in last night's piece. Until then, you have to view this bounce rather skeptically and if you are intent on playing the bounce, you had better have your foot positioned near the eject button as the need for speed on the exit could come at any time.
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