Today saw a rebound on the XJO taking it back to approximately the levels of last Friday's close. This is certainly good news for the bulls, as the XJO primes itself for another crack at 5,000. Although volumes don't exactly appear to be contracting, the focus should now be on the ascending triangle involving the 4,969 level and whether a breakout is coming. To invalidate the continuation of the uptrend, bears will quickly want a breakdown back below 4,900. MACD bullish divergence continues to diminish, and this may suggest that there is insufficient springboard off the current consolidation to move much higher.
The hourly chart shows that the trend from mid-January is still alive after a move off of 4,870 yesterday. Bulls will be looking to take out 4,930 and move into the upper part of the channel in the coming days. MACD has noticeably reclaimed a bullish stance, though it seems to have reached a plateau today which may indicate upward momentum is slowing.
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