Toward A Retest Of The January Highs - II

The upside breakout this morning brings the possibility of a retest of the January highs. Unless we see a substantial increase in volume and breadth we should consider this to be wave (B) up, to be followed by wave (C) down. Whether or not wave (C) will be a full retest of the February low remains to be seen. If breadth improves, this correction may turn into a triangle with wave (C) only retracing part of (B) and waves (D) and (E) following into early April. What I would like to see at this point from the intermediate term bullish perspective is a strong enough move toward the highs to put the bears on their heels, so that we can position strongly to the long side off of wave (C). We should know by the end of this week, if that will be the case.

The other possibility that will come up is if the current movement turns into 5 waves up. Then we could hopefully look to position strongly on the long side on wave 2 down.

Thankfully, we are getting close to a resolution of this correction that will help us make the most of the rest of this year.


Added Qualification On Retest

February 5 day opening range resistance is at 45.82 and January 5 day opening range resistance is at 45.92. I expect that this area will be difficult to get through, but if it does the January highs will be next. Volume is falling off since my earlier post, so this will probably not qualify as a follow-through day.