Today we gapped up and came very close to reaching the previous swing high before retracing by almost 50% by the close. We did the same thing yesterday and with more volume but less price range. It'll be important to see how we deal with the previous swing high level at 103.35 when we get there. Probably tomorrow. Although, tomorrow is Non-Farm Payroll Report at 8:30am ET, which can swing the market in any direction, so who knows.
Today's bottom wick did not fill the full gap. That's a sign of strength, at the moment. However, going forward there will be some unfinished business closing that gap, which I like to call "pressure" but its not really pressure. It would be nice to hit our target before reversing enough to finish closing the gap. If we fill the gap before hitting our target then we'll have to endure some heat. If we fill the gap and close under the 8ema, we may have to close out of the position.
I added the 2 thick, yellow, angled lines to show a short term AB/CD. We're going to need a CD length extension, like 1.272 or 1.618 the length of AB to avoid taking some heat very soon, probably tomorrow.
Notice we still have plenty of room in the Stochastics before becoming overbought.
The Feb 115 Call short hedge I explained yesterday high today was 2.30, so we're not yet close to the 4.00 target.
Bottom line is we're looking strongly bullish at the moment.
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