As per last week’s Briefing, the structural divergences discussed suggested we were likely at a short to intermediate term bottom. Since then, the Indices have rallied. The price development of the rally suggests it is a countertrend move. While that appears to be the higher possibility as of today, there is still a small probability we are at a bottom. I think that much less likely but have to hold open the possibility.
The rally is developing as a countertrend move and could be complete as of today’s trading. If, on any move lower tomorrow, the open gaps hold, that would suggest a more complex countertrend move is developing. If the gaps do not hold, expect a lower low before an intermediate term bottom is formed.