I've been expecting a short term low as the market worked it's way into the half cycle low. It seems pretty obvious that low is now in.
I also noted last week in the weekend report that the bounce out of the half cycle low was likely to form a 1-2-3 reversal. That reversal pattern is now in play. Any close back above 930 will invalidate the reversal and suggest the rally still has further to go.
On the other hand a close below 882 would confirm the reversal and put the odds in favor of the counter trend rally being over. It would also make the current daily cycle left translated which would then position the decline into the cycle low later this month or early June to move below the last cycle low of 825.
There is interesting pattern developing in the dollar also.
More in tonight's report.
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