UPDATE: As the late sunday evening news from eu is good and that a resolution has been found, the markets will likely continue rising next week. It is a real possibility that there will be no pullback and it would be best to just get in and ride it up. Obama wont allow anything dramatic since the main focus of elections will be economy and a rising stock market helps.
As indeces await the news from eu, gold has retraced and digested enough to be a buy here. Notice the lowering volume as we have gone sideways, thats positive as price has found an equilibrium.
The diamond in spx did not play out, however it might be a fakeout at this point since vix and nas have not confirmed the breakout yet. On a daily timeframe i think this is now certain that any dip is to be bought.
Put holders have finaly capitulated and that ha signaled a top of some sort in the past.
And heres one alchemy ocillator which indicates a pullback coming.
Price has found an equilirium here and now it will pick its next direction. Concidering eu summit, the most expected outcome here is a positivie resoliution from europe and further rally, and the least expected is a resolution but followed by a drop once everybody realises wat it will cost for the eu banks.
There is potential for a diamond
Putcall is unusual, signaling that futher squeeze here would hurt put holders who are in majority even as we have climbed higher
The gap up is on low volume so far and that does not make me a buyer here, i still think we will get a retrace before a more prolonged up move.
I think market will find support here and will bounce higher than expected into end of the year. Either that or we will flush out the retail hands once more after a more meager bounce, either way i think a bigger buying opportunity is at hand or very close to. I do bear in mind however that sentiment is very bearish and everybody has suddenly become contrarian.
Ise and Aaii data: