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The accompanied chart is a brief summary of what was already forecasted and what happened today. I mentioned the strong R, in using the analogy of walking in snow as opposed to dry land.I said this week's peak might be the WR2 at 5493.
A look at the chart shows how price action wanted to take off but all that R was in the way.
The nice thing is the cloud has been touched and even slightly penetrated. Today's peak was 5494, one point above my WR2. Because of that strong move, it produced some high volatility. Anytime that, in this case WR2 is hit without a correction at WR1, that is what I call a continuation pattern, and invariably, there is a move back to the WR1. Also the cloud was hit for the first time, so it is also strong R. The tenken and kijun are also strong R, as we are still awaiting the close above it.
I did say the WR2 would act as possible containment for this market this week. With it being hit the first day and with the weekly cloud acting as strong support, there is now some conjecture. We need a close for the week above 5272 in order for the interim bullish bias to remain. It will help to further confirm the bias by getting a close on this chart above 5377, which is the tenken, and then the cloud, currently at 5450. From there, it should be a strong move towards 5687, and the suspense is over.
A further downside move towards the WS1 at 5236 cannot be ruled out.