We had a nice Bull flag form today. I expect that we will rally tomorrow. The 60 day 60 minute chart shows that we are in a large bullish descending wedge. Volume is increasing in the wedge, which isn't a great sign if you are bullish. Wedges with descending volume have a higher likelihood of their pattern playing out.
What bothers me today is the ISEE hit a 52 week high (220). Basically 2.2 calls were purchased for every put on the International Stock Exchange. This means sentiment is EXTREMELY bullish. The problem is that its a contrarian indicator.I expect that this rally might be violent and fast as opposed to wave 2 which was slow and choppy.
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