The latest whipsaw price action has caught many traders off guard. This indicates that the distribution is going in full scale. The question is, how big are the positions, the big IB have to unload. In case, the positions are very big, they would need more players to unload to. And the only way to involve more players is to make another squeeze to the upside.
Even though, the price indicates, that the top might be in, MACD and Volume are saying we might have another push higher. Also we need to factor in Seasonal factors and continued EUR/USD weakness.
So, right now, I would be looking for the last push lower to the 1095-1100 level to close the gap. This is a good area to start accumulating longs (Divergence and Classical Patterns might help to chose the right entry point). From there on, I would be looking to a traditional yer-end rally to 1140-1150 area.
