As the 5 min 3 charts hinted at, the downside has subsided and we are getting some of that lateral basing action intraday. I'm not seeing a bunch of positive movement yet, but the negative downside movement seems to have stabilized. I still think the chances are good for an intraday bounce. Try to remember the different versions of tops/reversals I showed you this morning to help put things in perspective.
I view counter-trend bounces, whether intraday or multi-day to be a good thing. They are good in keeping the market from reaching extreme oversold conditions in which you get an unpredictable large bounce and they offer opportunities to trade intraday on counter trend moves as well as set up positions with better trade characteristics. In the end, it doesn't really matter if I like them or not, they are simply the reality of the market and you can either understand them and use them to your advantage or let them cause you undue stress and worry.
Some lateral price action forming into lower volume, suggests some intraday accumulation or at least an area that is ripe for it. Please understand I'm talking about intraday dynamics and not the daily trend.
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