Futures look like a rising wedge in the overnight session, which could lead the cash index in the regular session to the 1425 area cited yesterday. 1430.49 is the 38% from the 1474.51 high to the 1403.28 low. The 50-day MA is at 1434.55. A very strong internal trend line will provide resistance at the 1440 area. Below remains 1403.28 and 1396.56.
I still think that even if the market hits lower levels, there are new highs on the way. However, this view will come into question if at any time there is a 161.8 or 261.8% Fibonacci expansion down which would suggest an impulsive decline. Even if we head much lower to the 1318 or 1222 levels mentioned several days ago, it is how we get there that counts. My bet remains corrective rather than impulsive.
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