Ek: The "one more leg down albeit small" has already occurred. The reversal at the 12:05 ET five-minute bar was the (momentum low), that brief rally was followed by the "possible" one more leg down which basically tested the 12:05 ET five-minute bar reversal and in the process set a slightly lower low (the price low), a classic bottoming process.
So, we’ve already seen the expected minimum, an "intra-day" reversal; let's see if it can extend to a short-term. Judging from the oversold condition from which it began, I would expect more upside.
The Naz did close above the 61.8% retrace, but not before it backed up after moving above it and tested it for support. Then the Naz price action accelerated after the test.
Next hurdle should be the 1280 area followed by the 1300 area. As the shorter-term intra-day models cycle, I expect the price action to oscillate but with an up bias. The five and fifteen-minute models are already in or near overbought.
Regards,
LG
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