Nasty as Friday’s plunge may have seemed, it left intact two closely spaced, bullish targets we’ve been using for the last week or so as a minimum upside objective. To simplify, we’ll remain focused on the lower one, 1426.60, since any rally that gets there is likely to hit the higher target (see archive) at 1427.00 as well. We’ll have a better idea of whether bulls are merely biding their time or, alternatively, seriously fatigued once the down-leg shown has generated a ‘c-d’ follow-through. If it’s no worse than the pause that refreshes, expect the corrective phase to reverse from a ‘p’ midpoint resembling the hypothetical one sketched.
