Thurs, Feb 10

The market found support at yet another daily 50% extension long at 1311 drawn from the highs at 1299.50s to the new highs at 1322.25. The bulls then filled the gap and put a squeeze on the shorts from the premarket session. The target on the daily extension long suggests we grind higher to 1327.75. It's important to note that after finding support at the daily 50% extension long the bulls then failed their first long setup on a 15 minute time frame, showing some weakness in the move off the 1311 level. From here we should look for the bears to sell their first 15 minute short setup in order to put some pressure on the longs that found support at today's daily 50% extension long. If the bears can get it done and the daily extension long fails its possible we actually see a pullback into the full 50% daily long at 1292.5.
If they cant get it done, which seems very likely in this QE2 market, the next stop is 1327.75.