I know it is not actually the Holy Grail, but it really is about as close to one as I have ever seen on an intermediate term basis.
The 5 minute chart is starting to exhibit signs of weakness and a potential ultra short term top.
Although the market will be fighting some seasonal strength with the end of the month and the second half of January and a Wednesday, it could take some doing to accomplish the task.
The FOMC announcement is tomorrow as well, so it should prove to be a very interesting day.
All I can say about this item is that the market has very high hopes of at least a half point cut and anything less would be Bernake Suicide.
There is some confluence coming into the market for a corrective phase. The wedge that is forming has a target that matches a 62% retrace of the rally you see on this chart.
If you have some short term call options in place, you might want to confirm the break on the triangle and should it break lower then lighten up on your ultra short term positions. This action is for short term traders only.
Intermediate and long term traders should welcome this potential brief pullback as an opportunity to increase your equity exposure.
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