Rip your face off rally
I would call today's action a "rip your face off" rally. Impressive reaction to the ECB's announcement of a bond buying program to bail out ailing European countries. Market demand was coiled up like a spring according to the daily scores for the last few days. Be very cautious about buying into this pop. A quick review of the pictures below will quickly illustrate why I'm not a buyer here.
On the daily scores, today's action was a rocketship, propelling the 4hr and daily scores into red territory. Note the chart of 4 hour scores above. The timeframe is 1 Jun - today. You'll note how high the the 4 hour score looks relative to previous peaks. This alone is enough for me to say, congratulations to those that made a killing today, but I'm not pitching into this fight.
The ascending slope of today's candles, %B, and the CCI (a new addition to my charts) is astounding on the 4 hr chart above.
The daily chart is also showing the spectacular move. What I note is that the RSI is reaching peak-ish levels. Maybe we see a couple more days of market advance, but then it should come back to reality. I tend to believe that the slope on the way up is, more or less, the slope on the way down. That would lead me to believe that a snapback is likely and those short term traders that are chasing this news event will get hurt.
GOOD LUCK TOMORROW!