After the selling the market absorbed yesterday and the action today, the SP500, NQ100 and the DJI look prepared to build on two days of success. The bears may not be willing to give up just yet however. The test area will be the ability to stay above 1272 for the Sep SP500 futures, and 1968 in the Sep NQ futures. While closes can make a price look safe, the action lately puts any price in the potential trading range. The week has allowed the market to field some volatility and price action to levels where there was enough buying and diminishing liquidation to halt the break. The market has been tested, but visiting the lows again would be a problem.
No change in models.
