SHORT TERM: We have an upside gap.
Overnight the foreign exchanges rallied nicely, with the ASX and BSE again making new highs. Even Europe came in higher today +1/4%, as our Bond market opened lower. Stocks gapped up at the open, and have not yet closed that gap. Looking back at this entire rally from March 10th. We have not had any gap openings that have not been closed almost immediately. Upside gaps usually occur during a third wave: the strongest, and the wave usually with the most acceleration to the upside. So todays upside gap opening is something to watch for the remainder of the day. If the usual selling does not come in and close it. I feel we’re on our way higher, resuming the rally, from these oversold levels. Thus far, our EW pivots have held nicely.
INTERMEDIATE TERM: uptrend
LONG TERM: bullish