Now I see that the decline of the last three days was the expected failure against the large scale trendlines, but that large scale pattern is itself, possibly failing. The rally out of the 7/6/10 low has regathered at the bottom trendline channel. I have projected today's close as both the high and low for tomorrow, but that is just to show how we have risen off of the bottom trendline, showing it's still alive...
I was also quite bothered by what a low node value the rally was failing at against the long range trendlines (near the .250 node for the $SPX and .125 Node for the $RUT). The $RUT value is really early. Now I see maybe it was meant to be rejuvenated and continued, which makes perfect sense...
Update 6:50 P.M.
It's possible I was hasty in withdrawing today, the put/call ratios still favor decline and sentiment is neutral. I see the futures are still real bearish. It's possible that though the market bounced off of my old trendlines, they may not hold... There's little other evidence either way. The pattern I saw in the $RVX does look complete, but if the pattern is not what I think it is, it doesn't matter...
We'll see what happens tomorrow...
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