Yesterdays reversal was exactly at the 50 retracement level and will hold down the market for a few days as it will be crucial if we can close below the 1100 level especially on a weekly closing basis. The basic approach is that the right shoulder should take 2-3 months to build and retest the neckline level with enough momentum to break considerably lower which might be hard to accomplish right now as some indicators are too bearish for that instance as the ISEE MAs only a Lehman event might alter that. The LUNAR ECLIPSE pattern evolving this weekend will trigger the basic momentum and drag markets lower but the full effect might not show up right away though as we have the very bullish Jupiter Uranus conjunction still playing out for now which produced this erratic upside move. Right now the Sun is running over the Grand Cross pattern and will limit upside moves and rather bring prices down a bit more. second half of the week we still might see another upside thrust by the manipulators - definetly early next week as we go for an important window dressing and long weekend with independence day. expect volatile swings around the 200 MA for now and a test of the 1150-60 level probably next week might get unlikely if we close below 1100 on a weekly level but that is not very likely. For the remaining week the range should be 1090 - 1120.
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