We flagged the fact yesterday that we were at a long term support area going back to August 07. Well the Bulls put in a decentshow yesterday and there is potential for further upside. Our first objective would be Channel Resistance at 864 but our last failure high at 899 is a much bigger level. Longer term the Bulls are intotal control but as long as we do not slip back below our new Marabuzo line, just above 800, then there is more upside to come.
A Marabuzo line is the 50% point between the open and close on a large range day where these two points are at or close to the days extremes. This line acts as resistance as we try to bounce and as support in a pull-back situation.
As long as we hold above 800 then we are looking for a further bounce. Longer term we shall be watching resistance levels mentioned above for the first signs of failure as this is still a Bear market for selling strength.