Markets opened flat but rallied in one heck of a straight line to slightly beat 1520 before taking a breather.
As pointed out yesterday, the hourly OBV believed price was too low at sub 1500 and implied price ought to readjust to near 1520. Lo and behold it took less than a day to reach 1520.
The question is whether or not we are heading to higher highs. Well, based on OBV levels, not surprisingly, it's telling me we ought to be > 1530.
Volume leads price. Not necessarily a law but has historically been a good indicator.
I closed out the longs and shorted near 1520 at the end of the day. The reason is although I think price should be > 1530, the problem is the CCIs are now moving overbought on the shorter timeframes. Additionally CCI 8 showing a small negative divergence.
Preliminary target for end of day February is somewhere at 1500 is my guess
On the 10 minute, the ADX is cooling off a bit and price has finally come back into the kelt band. The entire day, price exceeded the kelt and was bumping along the upper BB.