Price still has memory.
When it gets amnesia, it will be an interesting sight to behold, indeed. However, for now, we need to pay attention to the 1100 level on the S&P 500. Ever since last Wednesday’s bloodbath, the bulls found support just below 1070. They have also found resistance right smack at 1100, which happened to be the level precisely where the bears gapped up down and held below last week.
Above 1100, you can be sure many buy-cover stops will be triggered for unhappy shorts, and some fresh buyers will emerge as well. Right now, The PPT is implying….well, wouldn’t you love to know that?