The market clearly floored on both the 15 and 60min cycles, the current 7pt bounce is to be expected - although of course its highly annoying to anyone still short. As ever, it is always about the power of the move, and right now the moves are just weak, the sub 20' VIX is testament to this idea. If we are going to break below 1357, we are likely going to need to see VIX break the 21 level.
So..am looking for a RS to form...1405/07 would be the ideal max' level. The fact that the 10MA is also around that level - currently sp'1406, would make for a nice place for the market to fail/rollover.
Maybe this micro-cycle can peak before today ends? That would at least make Thursday a little more bearish, and then we can await Friday for the more dynamic move..one way or the other.