US equity indexes have broken the downward trend, with the sp +72pts @ 1940 (intra low 1880). The two leaders - Trans/R2K, settled higher by a powerful 2.9% and 2.4% respectively. There is clarity in the near term, with a secure double floor of sp'1867, first target upside is the 2000 threshold.
Suffice to say... net daily gains. The collapse wave from last Wednesday afternoon (2096), has concluded with a double floor of 1867.
So.. 6 days... 229pts.
Now that a floor appears secure... how high a bounce?
Best guess.. upside to at least the psy' level of 2000.
Where it gets tricky is whether the market can keep pushing into the next FOMC (Sept 17'th). If so.. then we could battle as high as the 2050/70 zone.
From there.. the bears should have a high chance at smashing the market lower into end Sept/early Oct.
The sp'1725/00 zone - a 38% retrace of the giant wave from Oct'2011 (1074/2134), is target.
more later... on the VIX