Last week we where looking for a low below 1100 and between the 21 st and 23 rd . The price levels below 1100 were 1097 and 1085 - low was 1081 on the 22 nd . The low on the 22 nd had a huge volume spike which, as you know, will temporarily stop the drive down. So we cannot draw any conclusion from Monday. The normal counter trend rally in a fast move for this index is 3 or 4 days-then out to 7 to 11 days.
Today is the third day up so the rally is at risk now.
If today has very light volume and small range, then it will again look like there is no interest and price will likely move down a few days. The amount of selling that comes into the market will tell us what kind of low has been set in. The resistance that holds the trend down hard is between 1155 and 1163. This is the first time I will not be selling aggressively into the rally. I will be exiting the few stocks I bought Thursday.