Well, there are two ways of looking at it, the force of the down move could be matched to the upside. HOWEVER, on a weekly chart we are very very near the top of a channel. Personally, I'm looking for shorts for intra day or a couple of days. No swing for me here unless they are very compelling.
Something else to consider? I've heard good trading teachers say that news isn't always the reason behind big reversal moves but we are near the top of the weekly channel and the Ferguson news should break real soon. How ironic is that?
Just throwing another log on the fire, but when I see 2 lows and then a high and the high is ~120 trading days apart I think of George Lindsay and his LLH pattern (meaning 120 trading days from 17Oct to look for the topping of this recent pattern--->Saturday, February 14, 2015 using straight day count). I remind myself to also remember that the Market is about "fooling most of the people most of the time"... not sure if Buffet said that, but he probably, thought it. Sentiment is important so sentiment wise, allot of folks were caught off-sides in the recent sell off (which is why we have the rapid ramp up), now, with the holiday season ,there will plenty of low volume days for the longs to press. As context, just think... on 17Oct the market was down -for-the-year-, and now we are at all time highs going into a new year with the 4 year presidential cycle as wind in our sails and China just joined the QE camp... I can fathom a scenario with longs squeezing shorts just because the market loves the Trap, of course with a few headfakes on the way. Just-For-Thought