This is the second bearish reversal in the last couple of weeks and the selling was pronounced and in heavy volume. However, the low from May 25th has not been breached and it must hold for the the intermediate bullish wave to continue. It the 1312 support is broken then the trend will officially turn back down. If that happens, after a new intermediate low is set, the market will re-visit the TA again at which point it will be a re-test or a real rally. The market does comfortably trade above the 200 day MA and despite all the news recently, the market has actually held up. So I expect a real rally to resume sooner rather than later.
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