The bulls came out

It was a fed day for sure. After a lower low in the overnight session, the bulls took it higher from the start. They took it so much higher that I had to re-evaluate my count to provide for a higher high. Looking at the patterns, everything points to at least another move down to my previous target. The move off the high doesn't fit in the previous price patterns and so points to a new wave pattern. The move down was hardly enough to make a complete pattern, so there's the quandry.


For the Bears
Today's rally took us right to the .786 retracement on the cash index and sold off. A very good potential reversal signal to the downside.


For the Bulls
The selloff at the .786 retracement did not make a lower low (yet), so if price immediately turns up from here, then the Bulls should get the market up into my previous bullish targets (1025+ zone).