Currently the bias has shifted slightly in favor of an upside resolution to the trading range, but Toni Hansen doesn't expect the rally to continue far into the morning on Monday without correcting.

Toni Hansen's outlook still remains bearish.

Toni Hansen notes that the intraday bias is still bullish, but she is concerned that this upside is going to be short-lived and that the end of the week or the beginning of next will see another test of the daily lows.

In terms of price action this coming week, Toni Hansen sees the market as slightly bullish on the 30-minute time frame, but notes that this can easily just create a longer congestion zone on the 60-minute time frame before the market breaks lower.

Although Toni Hansen feels that the market is less likely to experience downside trend days into the weekend, the market bias is still favoring the bears.

Even though the market ended the day rather extended, due to the channel break of the upside from the past two weeks Toni Hansen expects more downside into the weekend.

The market is currently dealing with the daily resistance of a few weeks ago. If the market drops sharply off this resistance, then a triangle on a daily-weekly time frame becomes likely, whereas congestion here would create a Phoenix on the daily time frame.

A number of small cap stocks have really started to show strength and have begun to turn back around with favor for continued upside on the weekly and monthly time frames.

Going into Friday Toni Hansen is expecting the market to slow. As long as the selling is kept modestly at bay on Friday, she will be looking for more upside into next week with the highs from the second week of January as the next decent daily resistance the market will need to deal with.

Following the closing bell, the index futures continued to sell off, extending Wednesday's afternoon losses before finally becoming exhausted and rounding off with a slow correction off lows into the early morning hours.