Looking back at Thursday's and Friday's posts, I outlined a potential retracement scenario.
It is worth noting that the low today met several targets on the SPX:
- Upper Support established in September
- A = C since the October high
- 50% retrace of the October rally
It also looks very proportionate when compared to the March 2011 pullback.
My main 60-min indicator hasn't bottomed yet, but it is starting to slow. Could this be the start of a tradeable bottom? I don't know yet, I have no dog in the race (I am neutral at the moment, see the post from a couple of hours ago). But if it continues in this bottoming fashion tomorrow (and continues to turn my main indicator), then I will consider it more strongly.