So obviously a huge rally today, call it bullish all you like but in my opinion it was the opposite, in fact what we have been seeing for the last 2 weeks has perhaps been the bears gaining strength and the rally running on empty, sucking in as many bulls as possible before the next leg down, this is backed up by RSI and MACD divergence on the 60 & 120 minute TFs at the moment and the fact that we have only added on about 4% since the 7th of April, which isn't a lot considering in contrast how large and fast the majority of this move has been, I see this as the greed phase of the rally, similar to what we saw before the first wave of selling.
The way I see it, the rally has been on it's last leg and running on empty since 04/07, that being said it could make it to the 3000 level with continued bearish divergence, this would coincide with the end of the wedge pattern but then the sellers take control. However, if price breaks down and we start to see hourly or even daily closes below the wedge, that would be confirmation to go short I believe and we would see impulsive selling down to the 2650 support level which will be the first test for the bears.
The way I see it, the rally has been on it's last leg and running on empty since 04/07, that being said it could make it to the 3000 level with continued bearish divergence, this would coincide with the end of the wedge pattern but then the sellers take control. However, if price breaks down and we start to see hourly or even daily closes below the wedge, that would be confirmation to go short I believe and we would see impulsive selling down to the 2650 support level which will be the first test for the bears.