Up 136, Now What?

The DJIA clearly took off today, taking out previous highs established above 11,000. However, I'm skeptical of this rally. Note that we still have negative divergence on the RSI and MACD. Also, there's talk about this being more of a short-cover rally.

On the other hand, if we consolidate at this level and don't venture back to our trading range (10,700-11,000), we could then see a move higher.

Strategy here, then, is probably to wait for confirmation of base or if you feel speculative enough, take a short position with tight stops.