With a small thrust at day’s end, the futures finally generated a bullish impulse leg on the hourly chart. However, we shouldn’t overlook the fact that this occurred within a larger, bearish pattern on the daily chart (A=1352.50 on 4/10). Under the circumstances, bulls should exercise more caution than bears despite yesterday’s strong rally. Notice that a move to the ‘D’ rally target would bring the June contract into a cluster of external peaks, each of which could provide a technical rationale for getting long via camouflage. I’ll leave it to you to sort out the opportunities overnight, since it’s impossible to predict exactly how any rally might act relative to the cluster of external peaks.
