The 65-point bounce from today’s lows may have seemed impressive, but we know by now not to get too excited about it. Seemingly more impressive was the unhealthy breach of the trendline I’d drum-rolled here earlier; it came in around 2609, versus an actual low of 2583. The support was sufficiently clear and compelling that we must regard its violation as a sign that sellers are not yet through. We can give bulls the small benefit of the doubt in the meantime, provided each new upthrust they generate exceeds some minor ‘external’ peak on the 15-minute chart from earlier. That kind of price action is the best indicator we have for a continuation of the trend, and it cannot fail us as long as we have the patience and diligence to stay focused on the lesser charts. For now, though, a downside target I proffered here earlier at 2543.75 will obtain until such time as 2709.75 is exceeded by an upthrust._______ UPDATE (Dec 12, 8:30 a.m.): Short-covering has continued overnight, and although the futures are up a seemingly impressive 23 points at the moment, the rally is technically insignificant. It would still need to exceed the 2709.25 benchmark noted above to create a bullish impulse leg on merely the hourly chart.
