Plenty Of Time

All that remains for the immediate bullish case is that so far the market has failed to break 1767.99.

Of course there probably are other patterns that could occur which might yield another run to all-time highs, but at the moment, it appears that buyers have stepped in where they should.

A break of 1767.99 would most likely open the door to a deeper decline once a bounce exhausted itself.

On the 24-hour chart of the e-mini, it appears as if a triangle is forming which could end up disappointing the bulls. The triangle could give way to a final thrust below 1767.99 which would then pave the way to a much larger bounce.

Unless the S&P manages to retrace back to the 1820 area (61.8% of the decline) this week, new lows are quite possible. Of course, there is a 2-day Fed meeting starting today, and you never know how desperate they are until it's too late. Plenty of time after to jump in the fray.

A shallow bounce back to the 1800 area wouldn't say much after such a strong decline. It would probably only complete the triangle that appears to be forming on the e-mini.