Here's the pattern that I see is in play: The Megaphone or Bullhorn, which is a bearish pattern...They generally resolve to the downside. Again we have a minor rally into a major downtrend, which offers ideal shorting opportunity. We had a monstrous bounce Friday of what I believe is the notion of May/June lows holding, so there may be buyers coming in. July's low remains untested. Asia had a strong day, Europe is mixed, and we're 18 points or so off the 'painted' Sunday highs. Last night I was hoping for a run up to 1811 or so...if they went koo-koo with a run to test 25, so much the better..It is the end of the month, which traditionally has buying to make the books look good; as we are under the Daily 200....there may be selling to show clients they were flat in August. Should be a bit of a wild day, considering the range on Friday. I'm guessing the 85 zone is going to hold early, with an attempt for the overnight high of 105.5. My 1811 zone may be a pipe dream at this point...watching now looks like topping 1800 could be a problem. But you never know...and as always, time will tell. Yestercenter around 71 would be a lovely target to the downside if 84 gives way..and possible buying opportunity for a bounce based on price action down there....the Pivot at 78 may be as far as it goes today.
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