Despite the recovery, the broad up channel that has endured since the early June low of sp'1266..is over. It is a moderately uncertain guess, but I think the wave'2 top was indeed 1374, and we've just seen micro-wave'1 complete - that forms part of the big wave3 that many of the doomsters out there are looking for.
By definition, if that is correct, we're now due a micro-wave'2 higher, that could easily take us back to around 1350/60 by the middle of next week. If we then see a rollover, it will be putting in a critical lower high...and then some real entertainment can begin.
The closing hourly charts...
IWM
Dow
SP
Summary
The closing 20minutes or so was a little weak, but still, we're closing 10pts higher on the SP' from the morning low.
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Baring some 'news' tomorrow, I'm not expecting much, other than low volume algo-churn, probably to the moderate upside.
Regardless, my target is now a re-short next Tuesday - ahead of the Bernanke who speaks next Wednesday.
more later...