Despite the rally into Friday’s close, bearish patterns of both small and large degree continue to weigh on the futures. Their fall was arrested on Friday in a too-obvious place, just above a key external low recorded on July 28. If and when it gives way, expect the futures to fall to the 2040.75 target shown. That’s a Hidden Pivot support, and it is back-stopped by some structural lows near 2036 achieved early in July. I expect these lows to give way, but we’ll need to see how easily before we make any further judgments about the bear’s strength. Meanwhile, traders should position from the short side and fade any rallies. I still believe that the stock market made an internal top with the peak in NYSE breadth in late April. If so, we are witnessing a nascent bear market that, given the incredible leverage in the financial system, stands to be the worst in U.S. history. It is worth recalling that the Great Crash of 1929 was preceded by a last-gasp rally in August of that year.