This market is getting harder and harder to read. That is, if the bottom was in and there will be no “bottom test”. I looked through some charts and frankly I could not see a “bottom signal” on any of them (expect the cycle theory).
Let me put the thoughts on a chart, probably more easy that way. Below SPX daily chart. Look closer at jun-jul 2011; big up then big down (there was also bottom signs then..). Then take a look at dec 2011, very odd price action needless to say but still.. And now, I have no bottom signs but big down + 2 days flat and then big up is quite strange IMHO. Yes, I said that expect odd price action around MA200 but this is if you ask me more than strange.
I have no evidence but a feeling that we may be in a complex down move towards 1200 (and/or below). We may see much more on the upside before that (all the way to >1380 possible). I will follow volatility more closer from now on.