Just like Mel Brooks' cocaine high, all this green won't last much longer.
- Volume has been showing an inverse relationship to price recently, a bad sign for bulls after the strong summer uptrend.
- ROC is still under the zero line even after today's rally. Upwards momentum has not reappeared and should not be counted on to propel the price higher.
- The price seems to be forming a pennant starting at the beginning of September. Everyone and their grandma can see it. The target it creates around 3500 is just too obvious.
If we do end up reaching the top of the pennant I would suspect a head fake at the very least. Odds are, we won't even reach it.
THIS IS MY OPINION, NOT FINANCIAL ADVICE. TRADING INVLOVES RISK.