As you will see, the analysis suggests the higher probability is for another thrust lower that will eventually test or take out the recent lows. While there is always an alternate strategy, the information from the Market suggests a continuation of the selloff we saw on Friday going into the close. It is important to remember, while the analysis suggests a higher probability of one event over the other, there is always a smaller possibility of the alternate occurring. I discuss this in the Briefing and the patterns to look for should the Indices decide to continue this rally.
At this point moving off the lows, volume is decreasing. Market Breadth is falling. New highs are not increasing and it appears the Russell and Dow Transports that signaled a possible correction are showing more weakness.