Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
As mentioned this morning if the gap up held in the first hour it would be a win for the bulls intraday and indeed that is how it has played out. After basing between 1478 and 1480 for a few hours, we saw a new leg up begin at 1 PM. Quite constructive action and updating this morning’s chart there is still some room before we see the top end of this channel hit. About 10 more points from here it appears. After the Jan 2 gap up, we’ve had 10 days of consolidation before today’s push, normally that would lead to a lot of overhead space to run into but since the two day move around New Year’s was so extreme, the index is already nearing the top of its channel. We do have China GDP this evening, and Intel (INTC) after the bell so we’ll see which way those two push us.
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