A long lost BachNut reporting in after a long while in the wilderness...
The NYMO cycle is up. However, last three days have been declines in positive territory.
My data provider is FUBAR so I don't know what NYMO is doing today.
In any case, if it doesn't make new highs, we have a negative divergence to consider.
Price has popped above the upper keltner band and is looking to print a daily bar completely above the band.
It may be days or weeks away, but it is pretty reliable that all gains above the band get given back eventually.
That said the tag of the upper band says bulls are in control. It puts me in a bullish bias until I see a tag of the lower band someday in the future.
If this is a new bull market, we may see price hug the upper band as it marches to new heights or corrective moves will find support at the middle band.
I don't know what will happen.
There is some stuff for bears besides the negative NYMO divergence.
We have nine open gaps below. That is a lot and a move to close a few of those (opening some up gaps in the process) would not surprise.
We just broke the August 2022 high. The market is in the process of collecting stops above there and capitulating shorts. Follow through demand remains to be seen.
The keltner bands are starting to get narrow. They can get a fair bit narrower, but this is a condition that can precede volatility.
I am long runners.
I confess I am wondering if these bullish technicals are a trap or the real deal. They are what they are...
Back to the wilderness now...