At this point I cannot rule out a possible huge swing down into 1250 right into the Marty Armstrong cycle date of June 13, 2011. It could serve as an important low or at least a temporary low. This may occur into Monday or Tuesday of next week.
So far the follow on action from yesterday looks horrible. So will have to just wait and see how it all shakes out. I stated many times about how 1250 was a huge magnet so maybe that is exactly what will occur into early next week on the Marty date. Will switch back to BOT short signal right now at 1273 for a day or two on assumption that we will swing down massively into 1250 as a low.
RSI is setup in a zone for a plunge below 30 in which case price action could get ugly very quickly.
Still I think if we do rapidly hit 1250 on the Marty date it will be some type of short term or intermediate term low for the market.
At this point the only thing that will save the long side is some type of hammer reversal type close by end of day today with the market only down a handful of points…