SPX reached our initial downside target yesterday with no difficulty, bouncing to just slightly higher than our upside target. From yesterday’s members’ section:

On an intermediate basis, this morning’s drop to the red .618 (2086.93) is probably as much as the bears can hope for…

It appears that the next leg down will have to wait.  Futures were all over the map last night, presently showing a gain of 4 points after ramping as high as 9.50.

CL provided most of the boost, but has now retraced .786 of the recent losses……while USDJPY is arguing for a sell-off,  particularly if that SMA100 is broken again.The US dollar is monkey in the middle, with a clear retreat from yesterday’s broken channel backtest to a less-than-clear destination below.continued for members…

Our forecast remains for lower prices with a tag of the red .886 at 2073 most likely.  If the purple channel midline breaks down, then the white .618 at 2036 starts to look like a real possibility — especially around May 20-22.