After looking at it and how the trading went, I think this is/was a bull trap and designed to squeeze out shorts.
If I had to guess, I think we'll overthrow important levels tomorrow (in the chart below) and then re-collapse, leaving trapped bulls and squeezed shorts with no good re-entry in its wake.
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Key Levels
Upside -- Right where we are, 1143, 1166
Downside -- Right where we are, 1102, 1077
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SPX Daily;
As you can see we closed right on the bottom of the bollingers and right at our old support level.
We did not break anything that says the selling is done today.
I expect we may pop higher tomorrow and trap some folks and squeeze some folks and then return to our previous path.
However,.. it is possible that was it for wave 5 and we have begun a big rally for Wave 2 up of Supercycle C down.
Where we close tomorrow will be pretty key in determining which one it is.
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Other notes..
1) some momo stocks didnt have much of a recover today, but some did
2) financials generally only gained back less than half of what they lost yesterday
GL
CJ
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