Tech only today, provided by Dave Toth, RJO.
Although the market hasn't taken out 17 Dec 7741 high yet, the extent of the past week's recovery is sufficient to define 22 Dec 7428 low as one of developing importance and our new short term risk parameter from which shorter term traders with tight risk profiles can objectively rebase and manage the risk of still advised bullish policy. The 240 min chart shows the market's acknowledgement and rejection of an area of former 7427 resistance turned support following 10 Dec break above 23 Nov 7427 high and resistance and the 50% retrace of Decs 7107-7741 portion of this year's major uptrend.
We always talk about and require a confirmed bearish divergence in momentum to threaten or break a clear and present uptrend. The definition of such a divergence is the market's break below a prior corrective low or and initial counter trend low. Last week's 7428 low would serve as an initial counter trend low if the market breaks below it without making a new high above 7741 and will then be defined as a prior corrective low if the market does break to new highs above 7741.