My Take

I can't get all the charts out to make the case right now and the difference between option 1 or 2 is subtle.

As far as I've been concerned, the market looks  like a short term downside correction would take place and then it would resume the upside move and that would eventually end, it would be during this stage that we'd be selling long positions (speculative ones) and starting or rather finishing the process of establishing or filling out mostly core short positions, a few longs here and there.

The other possibility is that the signals today that look like a short term pullback are distribution of higher prices and the market instead of making a correction and moving higher, essentially has made a correction through time this afternoon (lateral trade) and it continues higher as the divergences get worse.

Either way, the difference is really a matter of whether there's a short term correction, one I'm not too excited to try to trade.

I'll show you what I see later, after the close.

I'm still leaning toward the initial plan/idea for several reasons, but one is there are several potential or current shorts, GS is a good example that look like they still have a powerful upside move to make before they are ready to rollover and the other is that I have expected the market to make a powerful upside move, one that scares not only the shorts, but makes the longs feel like they missed the boat and were wrong not to buy the dip.

Either way, I do think the market will make a stronger, more emotional upside move.

Where we are right now, retail is not scared, they are shorting the market, they think this is a great place to do that and usually the market will allow them to think that and give them some downside as many won't enter the trade without price confirmation, so again, I still think the original idea is more probable, but I had to lay out the other which also relies on the idea from yesterday about "Slow boiling the frog" and essentially keeping the shorts in as long as possible on smaller upside moves until they can execute a short squeeze at higher price levels rather than lower one.