The market continues to triangulate. The question is thus; is the consolidation pattern bullish or bearish? I lean bullish because the triangle appears to be an ascending triangle versus descending. An ascending triangle slowly eats away at sellers and the market gets exhausted of selling and eventually pops higher above the triangle. A descending triangle does the opposite: Prices tend to have lower highs (skewed to the downside) and buying is exhausted and the market breaks lower. So far the bullish scenario better fits the overall pattern. As long as key pivot points hold, we must respect the pattern.
That short term bullish scenario fits the wave pattern of a Minor wave 2. There are 2 prominent open gap down targets much higher above in the market. The top gap is an extreme. Should that gap be reached, it would be an excellent place to try a nice short sell.
2 year reaching the highest since 2011 (via Zero Hedge). I use the 6 month for wave counts since the 3 month pattern is just too noisy for a decent count.