reversed up from a parabolic wedge bull flag
/ double bottom
/ failed breakout of the 180 low. The selloff down was climactic (sell vacuum). Prices are now testing the top of the sell climax around 240. The bears will try to form a double top
around this level, but since prices were previously in a bull flag
trading range and the breakout below failed, the bulls will probably get a second leg up and test of the 260 lows. Depending on how strong the rally is that follows, the bulls may get a test back into the upper trading range. The bears who sold the May 27 low are currently trapped. If they are unable to get out it will contribute and strengthen the bull rally. However, this market has contained heavy two sided trading for several years now, so most likely prices will continue to remain in a range with many tests up and down.
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