This morning's test of the previous day's low was met with very strong volume:
The chart below has horizontal lines indicating the previous day's Open/High/Low/Close.Of particular interest are the day's momentum divergences and First Cross entry signals. Also the fact that price was rejected from the PDO after basing around it for an hour.
It's also interesting to observe how much price has moved in these last three days. Key in on the 78.6% retracement zone.
On the 15-min chart we closed above our bullishly oriented Moving Averages (though if you use Simple Moving Averages price is wedged between the two MA's, so whatever). Price has retraced over 38% from our lows by today's close. Perhaps Monday we'll see a gap or move up to test the $110 price, being that we spent so much time around it today and Wednesday.
The weekly is interesting; showing those momentum divergences since March. March through July gave two divergent impulse pushes following a small window of downside momentum (which only amounted to a 7% correction). From mid-July to the end of this week, we have had two similar (and smaller still) divergent impulse pushes, and while price closed at it's highest price since October '08 it has barely any momentum left in it. Either we get more impulse up or correct another 7%, but something's got to give.
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