The market fell nicely last Friday and the bears mostly missed it I suspect. Today the bounce bounce should shake a bunch of them out, but the down move isn't over with yet. This will likely be a wild ride of downs and ups to fool both bulls and bears alike. Overhead resistance is obvious on the chart as there are many trendline above in the 4660-4690 area, so one of them should stop the rally.
Which one I don't know but if all we experienced on Friday was just a small wave 1 down inside a medium wave C then this rally should be a small wave 2 up... leaving small wave 3 down for Tuesday. Since this first drop was a little more then I expected I think this will drag out into this Friday before we complete the entire drop. And we could hit the 61.8% range in the mid-4400's, versus the low 4500's where the 50% mark is at.
It will be the last buying opportunity of the year before a very strong rally up. For today though I'm looking for a solid move up into the resistance area, then down again tomorrow, another bounce on Wednesday and final drop into Thursday or Friday for the low. It might go into next Monday, not sure until I see the patterns unfold. That's all for now. Have a blessed day.