While Portugal's debt got downgraded, the market (other than currencies) were able to shrug it off and keep the downside action contained. The market appears to be tracing out a nice triangle that should resolve to the upside tomorrow; however, if we get a move below today's low tomorrow morning (without a quick reversal), then we could be looking at a 1-2, 1-2 wind up to the downside. That's the trouble with triangles, they look perfect until they aren't!!
Should we resolve to the upside, then I'm looking for an initial target of 1176/1177 with a potential to get near 1200 if the big boys can get a squeeze going (are there even enough bears left to squeeze??).
So, here are the charts, still waiting for some price action to confirm the next down move.
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