9 July 2014

Great rally for the Bulls today, but patterns seem corrective.  Although I have been wrong before, the zigzagging affair upwards has a high probability of corrective attitude regardless of EW counts.  Our bias is still to the downside based on our ST indicating a downward trend.

At the moment, prices have bounced off of the 75ma line on the 60min chart, and the Bears would need to break that level to have a foothold on more sustained downtrend.  By breaking this ma, prices would also break a channel that has been in place since Mid-June.  If the line is broken the next level would be 1950 on the SPX.

MT: UP
ST: DOWN
PA: NA