This bounce has been a torture for bears and fur bulls alike. If bears think this has been frustrating, it could be promising to be quite frustrating indeed for the bulls. The upward retest of the broken impulse cycle suggests significant weakness lies ahead - weakness that will take out the August lows. Below, is a chart showing the daily working bear impulses. However, the weekly impulses are even more powerful and are in the very early stages. Therefore, significant leave lower prices below the August lows would be implied by those structures.
We are entering the statistically most bearish probability area for flows during this trading month between the 13th and 16th trading days of this month usually triggers outflow. Therefore, it is highly likely the reaction will be felt soon. This reaction can be large or it can be moderate, however, given the scale of this market, a downward reaction that would just be called consolidated could be plausible and in fairly short order to the mid-to-low 1900s and still be considered consolidative. However, keep in mind weekly impulses are rare, they are also potent and imply a pronounced period of selling - which most likely travels well into next year.