Although not a perfect pattern, this hard to see AB = CD could explain our bounce back. There may be small profit taking and hesitation induced reds at the prior highs, but the incredibly strong bounce on the pattern shows we have the potential for new highs as long as fundamental numbers and tomorrows CPI come out as good as they have been.
Make no mistake, this high volatility means a top could be coming in a few weeks. However, for traders, this is our moment to make profits after the investor favouritism of 2013.
Remember, all trades are risky and may involve loss of principal. Thoroughly investigate all strategies before trading in the equity markets.