Well, as described yesterday we saw our consolidation but the market waited until the overnight session to complete the scenario I had described yesterday. Many others are calling for a rally of the 1050 and below range without making a new low and that is still possible but daily and weekly chart are showing us the way for a new low.
MACD needs to turn negative first before we can re-attempt any upside and at the moment that means a minimum of 30-40 pts off the 1080 range. Tripple bottoms are very rare and we would need to see a V shape rally off the 1040-1050 range with at least two strong 60-min up bars. However, in absence of such a price pattern we shall continue to consolidate now between 1080 and 1040/1050 until next week to setup for a break of the lows.
Target had been identified for a while now in the 1008SPX range, plus minus a few points of course but I am sticking my neck out for 1008 =) Reaching this price level by July 8th-13th would setup nice for a bullish divergence on MACD as previously mentioned.
I will keep updates coming throughout the morning session.
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