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Bigger picture…500 weekly reflects higher lows on key Fibonacci support levels (1) and (1A).
Based upon the looks of the VIX, investors were getting a little too bearish around (2) and (3). I like the idea of shorting on counter trend rallies and harvesting on support, like yesterday at (2), as Premium Members took advantage of the gains in SMN over the past three days and booked nice profits. (suggested that SMN would do well)
A day before the highs in the broad market, at the peak of the right shoulder, (with a Head & Shoulder pattern being formed) I shared this chart (see post here) With the negative pattern looming overhead, odds remain pretty high that rallies should be expected and at this time are countertrend.