The yellow line I have drawn is the proverbial line in the sand. There are no outstanding requirements above the current price level of 1025 and there are a couple of outstanding requirements below. Most notably the 1018'50. For me to "buy" any rally to new highs having durable sponsorship I would expect that level and even down to 1015 to be tested before setting new highs. However this market has been ignoring most of what I like to see in a neat and tidy pattern so I will try and summarize best what the most likely outcomes will be:
If we close above this "line in the sand" then we are going back up to test the highs and any subsequent closes above 1035 will make me convinced we are in the beginnings of a new upleg to 1100+
If we close below the LITS (convincingly) then this means we are on our way to 1018'50 and then I will have to reassess depending on price action. But if 1015 breaks convincingly, let that be a great indicator that we might be starting a HUGE down leg back to at least 880 and maybe even 666
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