Yesterday the markets opened with a small gap up which was immediately sold. On a weak attempt to retest the high of the day the market then sold or significantly and fell to trade below the prior day’s low and set the low of the day at the 10.30 reversal time. The rally back eventually traded all the way to test the high the day at “1” and the market closed strong leaving a narrow bar on the daily chart staying mostly inside the prior days bar sitting right at the daily resistance level at “3”. There is not much to add to yesterday’s lengthy discussion. In general this remains a very bullish environment. The question is whether or not the market will be able to trade above the long-awaited consolidation at “3” or if another pullback will be in order. On an intraday basis prices are sitting very bullishly above a red bar which shows that a lot of strength still remains in the market even after the four day run to get to the highs at “3”. This will likely be somewhat of a significant area at “1” tomorrow and it will be the key area for the Bulls on an intraday basis. If the markets are weak, prices will likely decline to “2” and prices will continue to see a slow bleed on the daily chart until buying resumes. Once over “1” it opens the possibility of moving higher, taking out daily resistance and resuming a stage II daily chart, even today.