Toni Hansen expects the market to gap substantially lower into the open. After two or three days of upside it is typical for the market to form a larger correction to that trend, so the gap is going to assist with that correction.

A number of big companies will be reporting earnings on Thursday and have the potential to influence the market strongly over the next two days, but the market's larger bias is showing signs of initial confirmation of a larger daily correction.

The market displayed another strong intraday showing on the upside on Tuesday and volume was high, but some change of pace on a 60-minute time frame is needed to support any larger correction off lows.

The market's inability to follow each of the strong pushes higher with a more gradual pullback increases the risk of yet another strong breakdown on the daily time frame.

The action we have currently at hand suggests a most likely scenario that the breakdown on Wednesday that continued into Friday was a flush of the larger pattern. To confirm this bias now what we will need is a rapid reversal higher.

The 60-minute charts are once again looking bullish, so my bias into Friday will be on the upside.

Toni Hansen writes that the market bias is now favoring another lower low on the 60-minute time frame.

Toni Hansen writes that favor continues to reside with the bulls as the week progresses.

Although the reversal pattern Toni Hansen had been watching for on the 60-minute time frame failed to provide confirmation on Monday, it has not confirmed a failure either.

Given the current price formation on the 60-minute time frame, Toni Hansen is expecting the market to bounce back this coming week.