Wednesday 12/30/15

The daily chart shows price yesterday making a higher low, higher high and higher close versus Monday's candle, taking out the mid-December high in the process.  Price today has thus far opened above its daily pivot and made a higher high but is currently trading below yesterday's close.

With yesterday's action, any fear that the mid-December high was an early MW high under monthly pivot/MM MA resistance was eliminated.  While the ensuing pullback from that high dropped below several higher timeframe pivots and MAs that should have provided support, it can now be confirmed that the pullback was merely the downside of the multi-day cycle.

While an extended MW high made above all higher timeframe pivots and MAs is far more bullish than an early MW high made under those same pivots and MAs, the market is not completely out of the woods. The odds of a new all-time high before the next multi-month high (projected for the week ending 1/22/16) have increased dramatically, but there is first the issue of an overdue MW high to settle.  It may be asking too much for price to break through so much overhead resistance before the MW cycle finally rolls over in search of its MW low projected for 1/6.  When price breaks below the blue MD MA, it will be a clue that the MW high has likely been seen.

The hourly chart shows price rising throughout the day yesterday until finding its 24Hr high after the close.  Price was finally able to break Session MA support in overnight trading and recently broke 24Hr MA support one bar ago.   Due to yesterday's day-long rally, we are well overdue to see a 24Hr low.   If price is still on the upside of the multi-day cycle, we should find support on the daily pivot and then move higher until the close.    Should the daily pivot fail to provide support to price, it will indicate that price has seen an early MD high; given the overdue nature of the MW high, it will possibly also mean the MW high has been seen.  Price would then be expected to drop to at least the 2048 area for its MD low, and perhaps down to the 2035 area over the coming days for its MW low.