BOTTOM LINE: Markets bounced as expected, and will likely continue moving higher in a choppy [corrective] fashion. This will form the "right shoulder" on the charts. I expect this to last into early next week.
Below is an hourly chart of the German DAX. I consider this index to have topped on October 23, and since then it fell in an impulsive fashion. This will now be corrected, likely pushing the index another 100 or so points higher.
I believe markets will be pulled higher by the Energy sector (third biggest), as oil (shown here on a daily chart) pushes higher towards $85. This will then set up a nice top.
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