ja, in response to your longer term view, I think this decline...

ja, in response to your longer term view, I think this decline will continue. It may dip down into 800 for an inverse h&s or perhaps 700 for a big W, but I am thinking that this is part of the longer term bottoming process. I guess we see what happens in Oct or Nov. Looking at volume, the rally last night was on feeble volume but the prior decline was on big volume. The candles of the decline are also far more convincing than the indecisive little move last night which show that even after the previous decline traders are still selling the rallies aggressively. The last 90 minutes was dominated by selling, which suggests the big end of town isn't confident in equities atm and this fits with the rally in bonds. The rally last night also fits with a bearish retest and respect of previous support at around 900, so last nights move was just a corrective for the more important impulse down which remains dominant. A few scattered observations. Data tonight will probably be critical for any future move, especially cpi because the market is fixated in inflation at present as shown by the moves in gold and the usd. cheers!