The Stock Indices performed as expected this week. Longer term, there was a breakout in price to the upside. Thursday saw a retest of the breakout but the Indices were extremely oversold at the end of the day, suggesting a possible pause or countertrend rotation at the breakout. This is what occurred on Friday.
As a result, what happens from here will be significant in terms of the longer term development and larger price moves. Breaking support will raise the probability of additional downside. If support holds, the probabilities will increase for a bounce off the breakout and a move back to test recent highs and possibly all-time highs.
How price develops the first part of the week will be significant information for the longer term development. This will offer opportunities for larger degree moves.