Back to the markets.
The last two days have been constructive in the S&Ps. As we were discussing a few days ago in the Naz, it looks like a Spring is occuring at a critical point in the market. Of course, we can just fall down lower from here
But, for fun, here is a possible scenario we can watch out for.
If this has been a Spring, then the next step to anticipate is a test. This either comes in the next day or so, or after a Jump Across the (minor) Creek, and then a test. Following that, if successfull, a Jump Across the (major) Creek. If that occurs, then we can anticipate the all-critical Back Up to the Edge of the Creek or last Point of Support, and so on.
Again, this is simply one of many possible scenarios that the market may take. Right now, the news is pretty bad, so the timing seems right. The key to following this is to take it one principle at a time and let the next principle confirm. So, the potential Spring needs to be confirmed by a Test. A JAC needs confirmation by a test (BUEC), etc. It will be fun to see how it all unfolds.
Good trading!
Eiger