Friday’s upturn came from a 1281.00 low that was well above the worst-case bottom at 1274.50 that I’d projected. This is incipiently bullish, the moreso because the rally was impulsive on the hourly chart. It would have been still more encouraging if it had surpassed the 1298.80 peak shown as well, but bulls certainly deserve the benefit of the doubt for now. Night owls can bet on a follow-through, but it may not be easy, since the initial thrust will have attracted more attention than we should like. Other traders could affect the next move in several foreseeable ways: 1) by gapping higher Sunday night so that there’s little opportunity to get aboard; or, 2) by ratcheting lower to create a series of point ‘C’ lows that bamboozle and vex bulls by stopping them out before the next leg up. The first scenario would hold the more bullish implication going forward, but a slow takeoff should not be construed as meaning that bulls are not raring to go.
