Yesterday powerful thrust turned out to be a bull trap, but it must be viewed in the context of a healthy uptrend that has miles and miles to go. Even so, it will take bulls a while to get their courage back for a push into heavy supply near 164 that accumulated last April. This will be made easier because yesterday’s push blew past a small but important ‘external’ peak at 161^17 recorded exactly four months ago. For now, we’ll use the A-B impulse leg this created to generate a buy signal in the days ahead. The point ‘C’ low has yet to form, but if and when it does, the rally will need to get past the midpoint resistance of the rally leg to imply bulls are rested for another big push. _______ UPDATE (August 26, 12:41 a.m. EDT): The selloff from Monday’s high has been nasty, but it should be regarded as fright-mask stuff until such time as it takes out last Wednesday’s low, 156^30. That would do the sort of technical damage that would call for a reassessment of the short-term trend.
