Assuming this whole thing is a normal correction within the bull market which I dont think it is, but if it is, then the logical place to get a ST bounce will be around SPX 1360... In other words, SPX should keep making relatively small lower lows while McO diverges for a few days.
Normally , the first multiday rally off this low should be choppy, shallow and corrective like a bear flag. After that we should get another leg down, probably lower lows because internals and volume printed power spikes in the first leg. This whole thing in my opinion doesnt look normal, this is different than others, something quite unholy. This one butchered the leadership and it is so powerful as evident from intense volume and internals that developed in very short time frame relative to the past instances.
Edited by xD&Cox, 05 March 2007 - 11:08 PM.