Don't get to bearish, while the market has moved off it's highs it is nearing oversold and could give the market a short-term bounce.
The gap at 1050 is still open and the pressure on the market is still down so this gap may be filled before a move up. One thing to note is the positive divergence on RSI, the market has made lower lows on the hourly and RSI has not followed.
The 1050 level is now very important for this market, it is the nearest remaining gap and the up trendline from March. A move to 1050 also completes the descending triangle.
NYMO has moved below -80 and perviously this has started rallies since March.
Short-term the market is showing signs of oversold, so a bounce may be coming. Internals are weaker during this decline so the chance of a strong rally to new highs is less likely then the previous rallies.
