Despite the oversold indicators and overtly bearish sentiment no sign of a turn on the SPX. The trend remains down. Every rally attempt last week has been quickly extinguished.
Retaking 1294 would give me some confidence that a trend-reversal is in place. Until then the trend is down. For now the most probable (bullish) EW pattern is an Expanded Flat.
For now the next support level to watch is 1249. Trading below 1228 means that the (b) wave marked in the chart was probably (3) and we are in wave (4).
CRUDE OIL
Meanwhile, CL seems to have entered its thrust out of the triangle as forecast here. The triangle evolved to be a little wider that earlier thought ... as triangles tend to do. It is currently sitting on its H&S neckline. A clear break below should send it towards $83. A reversal should send a lot of H&S watchers rushing to cover shorts.
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