http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=6&dy=0&id=p38955316076&a=266398464

The short sharply sloped trendlines here tell the recent story — contrarian influence and trading markets.  And all trading within the box we described here http://www.edwards-magee.com/?p=5596.

The immediate situation is perfectly described lhere:

The a-b-g or whatever it was has morphed into a sidewavelet and tested the previous low.  (5 days down and on the support line) The vigorous response to this test gives us some expectation of continued progress, but, as above we are still in the box we recently defined.  We are still in the zone for aggressive investors but what’s the worst thing that can happen?:  a stop 1% under the low. Given resonable behavior next week we will lift our hedge.