Before I say anything about the market I'd like to point you in the direction of one of the best articles I've ever read about trading. Here is the link: Linda Bradford Raschke.
Today's White Opening Marubozu negates the Bearish Dark Cloud Cover Pattern we had yesterday.
The forks show a possible peak, but my indicators are still mixed. It's still up in the air. We are probably close to a turning turning point, but until the 1070 area is broken ( the bottom of the red fork ) there may not a clear sign. 1115 to 1130 still look like possible targets.
There are times of transition where it's best to let the big boys battle it out, and ride on their coat tails, but I feel this is also a calm before the storm. There is a weakness in the Daily Kumo tomorrow which I'm hoping the Bears will take advantage of.
// End of recap 2010.07.22 //
Testing the water inside the Daily Kumo.
This is not exactly what I was looking for when I said Price may "crawl" up the side of the Hourly Kumo, but it is not unheard of to break a Kumo by a small amount and then return, That's what recently happened with the Weekly Kumo.
Some forks have been readjusted, and while this rally may just be a last effort and a blow off, it does open the door to higher prices and cause for reevaluation. This red fork shows a great deal of Bullish potential and must be respected.
Unfortunately I'm probably going to be in and out all day and not really in attendance of the market today.
Take clues from the Red fork which is still in control, and look at the Fibonacci Ratios. 1115 area is a likely target and 1140 above that. The top of Daily Kumo sits near 1130 and next week has a pivot at 1122. Should Price continue above 1115, these levels may help with the decisions.
This mornings action negates the Bearish Candle pattern from yesterday