The long term bullish momentum has finally determined the direction up. The passing week started with a gap up, part of a kicker pattern, and the reaction for that was another impressive gap up the day after that took the market directly to the target of the Weekly Pinbar on sloping 8 EMA about 5 weeks ago. Lastly, the week closed with small reaction on that spot.
The Monthly bar closed as a bullish Pinbar touching the Monthly upper Bollinger band. Notice that it is quite far above the 8 EMA, something that can cause a shortening of the thrust up and sideways action waiting for the means to converge with the price
The market is on its way to the long term target mentioned here before, at 10040, pointed by Monthly Follow through (once the High of September 2016 had been taken out), and the AB=CD potential pattern that looks clearly on the Monthly timeframe.
The big question is whether the market is going to the target directly by consecutive HH HL Monthly bars – or are we before a pullback to test first the 8970 levels where the break up has been initiated.
A daily move up to test the all time high made last week that is going to end by a reversal down (and therefore not taking out the Monthly High which is the all time High) is a clear sign of weakness, and might indicate that the market has time a step that may develop to testing the Follow-through level break up, around 9000.
On the other hand, if the week is started with a new all time High – which also is taking out the Monthly High, the chances to see a big pullback to test the Monthly major break up level at 9000 – are slim.