It often pays to follow the leaders. Biotech dropped and reversed from its test of the August lows.
SOX-SPX ratio was relatively stronger on this decline than the August decline.
While it is a fool’s game to try to call situations like this in-day, the above are things I’ve noticed that would be helpful to the bull case, which is for a successful bottom re-test. This would be in line with the replay of 2011 scenario per the weekly SPX chart in NFTRH 362.
The alternative is of course, the bear case, which would bring SPX to the low mid 1700’s if the test fails.
I will not be a trading day play by play caller now. The above are positive views so far. I’ll now leave you to your view of the market.