A sharp bounce early in the week is likely due to extremely oversold conditions. Most importantly in the time cycles, August 9-10th are the days to watch closely for a large selloff capitulation.
Most market participants have failed to consider the consequences of a massive short squeeze. The wall of worry has been re-established. More like a Mount Everest of worry. These sentiments are extremely bullish.
The short squeeze of the century starts this week. Mark my words: Bet on P3 decline here and the market will take everything you have. The next major target is SPX 1385+ with new all time highs anticipated. And then.........
I cannot stress enough - please use caution bears in the upcoming week. Massive Bear Trap has been set.
The correction is nearly over with the current bull market (bubble) to continue.
SPY found major support Friday on several important trendlines, and fibonacci fan support. All of which intersect and acted as a "magnet".