1) We bounced off the huge sell off (really huge)... this would normally be expected but given the current market climate, it was just as possible that we could have collapsed.. The sell off yesterday being on low volume is telling.
2) The bounce failed... twice...but both times we reversed higher yet again and on volume. This is a good sign, first sign of real strength after fairly large moves down intra-day in awhile.
3) we closed very near the high of day and on higher volume than yesterday. It's beginning to appear that this market has literally run dry of sellers at least for awhile.
We want to see 900 get taken out to the upside...
this will require these 3 things to happen;
1) UYG takes out 6.30 in the northerly direction
2) UYM takes out 14.30
3) FAS (which represents the Russel 1000 section of financials) needs to take out 31$
The S&P will need help to take out 900.. particularly from commodity stocks and financial stocks. Which it is full of. So these 3 indexes need to take out their previous highs when the S&P reversed off 898. Those indexes don't take out those levels, we fail at 900.
My guess is that we test 900 again with these 3 indexes still off their highs.. reverse one more time, but not as far.. and then these 3 do a rocket shot and boost the S&P past 900 and confirm this inverse Head and Shoulders pattern...
GL trading. It's wild out there.
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