Last week’s marginal new record high generated a bullish impulse leg on the daily chart (see inset) before shares tanked on Friday. Now, it will take a ‘booster-stage’ rally of at least 110 points from 16192 or higher for bulls to seize the reins. Alternatively, an uncorrected fall of about 300 points from here, to below 16126, would hint of serious weakness to come. My gut feeling is the that the broad averages will move sideways to lower this week, providing us with a possible bottom-fishing opportunity at the p or D Hidden Pivot of the corrective pattern. More immediately, traders should view a rally Sunday night or Monday morning as a shorting opportunity. Stay tuned to the chat room if this interests you.
