The bears have everything set up in their favour to conclude the week. Both the 15/60min smaller cycles are arguably reset, the daily momentum is increasingly swinging toward the bears, and there is no QE this Friday. Primary target is sp'1625, secondary is 1600.
sp'daily3 - fib levels
Its been a long day, so I'll keep this short.
Suffice to say...bears have NO excuses for Friday. The price action today was very much one of a natural wave'2 bounce, and now we're due some degree of downside - arguably equal to that of Wednesday/early Thursday.
I see little reason why the bears can't at least break the market down to sp'1630/25, but if the market gets a little rattled, there is a small chance that the big 1600/1597 zone might be tested late Friday afternoon.
There is Durable Goods Orders data in pre-market, market is looking for 1.1%, so anything on the negative side should give the bears something to begin the day.
With Monday being closed for Memorial day, things could get a little quiet in the latter part of the day, but with no QE-pomo, bears should be generally okay going into the Friday close.
*I am heavy short the indexes, via IWM, now I wait, along with a fair few others!
Goodnight from London