On this higher time frame it becomes obvious that the RSI was rising when we coiling up at 4350. See attached chart to understand.
So we have gapped up 41 points this week leaving a 32 points Thursday and 9 points Friday.
We get it - here were 4450 calls that needed to get there no matter what.
Ok a couple of points:
We are inside a triangle - we are at the top - my guess is that we will press to 4472 on the open Monday which creates a double top - from there we go back to the other side of the triangle and clean up some the structure that has been left with holes.
If we reach 4472 its great spot to add puts or shorts - you'll know almost right away if you're right. This is my plan.
From there we can press higher to 4511 - A number I have mentioned many times - was a Fib number in August and became a High Volume Node.
This presumes that I have accurately drawn the channel.
Part of that structure with holes is highlighted with the green lines - this is where price moved up without really confirming ie: spending NO time there.
SPX gaps are at 4439 to 4448 from Friday and 4367 to 4400. There will be a reaction if we reach these levels. So watch the SPX as well /ES Futures.
There are Naked Points of Control at 4300 and 4350 currently. I do not think we will see 4300 unless this whole market is reversing.
4 Hour Chart.
