Goodbye correction, we hardly knew ya ... ya ... yadda .... yadda, yadda, yadda ....
With today's gap up things point strongly to the correction being done. A troubling sign yesterday was that the market moved back up into the previous bear flag territory (too aggressive for a retest) and refused to break down. Very tough and hard to interpret because it just parked itself for the rest of the afternoon lending to a move up or down.
Like I was saying Monday: "My 60-min Trend System is also expecting a lower low (see: Apr 7 - Daily and 60-min Cycles, Looking for an Edge). But the bear flag has already set the stage for a very large divergence with the next low. So I am expecting a pullback to look something like this: Apr 19".
Unfortunately only half of the prediction came to pass. We had massive divergence on Monday, but no lower low. Instead we got a quasi-double bottom. So that means that instead of getting a true divergence bottom, we got this double bottom that is very reminiscent of Nov 2010.
And if the market stays above 138.50 until Friday, then we will likely get a new 60-min Long Cycle Confirmation, which will just confirm that the down-cycle really is done (the signal that was sent out today: https://twitter.com/#!/binve01/status/195143049330950146 was a sub-cycle cover/buy signal). And from a time perspective, this 60-min down cycle will be pretty close to average. So I just have to respect the fact that the lower low does not look likely and that a double-bottom was all we were going to be offered. Oh well.
Bull's are ready to charge again. So heed the tape and move on.