GZ,
>>>>>>>> We might be getting ready to test the recent lows. If so, that would set the market up for a subsequent rally to around 8500 or better. <<<<<<<<<<
If the supports at 7500-7400 hold, if it gets that low, I agree that the next rebound could be stronger than this one. I would not even be surprised if the next rebound, under those circumstances, gets as high as 8800. The key is whether 7500-7400 holds.
I feel that the rebound will take place in the NOV/DEC time frame, and could start as early as the last week of OCT. Then the 4th quarter numbers come out which will then be a key in determining direction.
But the key is if 7500-7400 holds now, and still I do not have any strong technical evidence right now, besides mathematical projections (not convincing), that the support at 7400 will break.
If 7500-7400 support holds, I will be going long big time(short/mid-term). I also want to add that if we do get to 8800 it is still not conclusive that we will revert to a strong uptrend, probably just range trading again at higher levels.
Seeya
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