Although the market was a few dollars lower on the day, crucially for the bulls 1600 held as support and the pattern of higher lows and higher highs remained intact.
The next target for the bulls is to close above 1620, though the recent rally has been hesitant and slow going and the effect of the Cyprus situation appears to have faded away for now at least. However, the RSI on the daily chart is nowhere near overbought and leaves plenty of upside potential, if the bulls can find the confidence to continue their progress.
The bears will take heart from the bull's inability to test 1620, the weakening RSI on the 4 hour chart and the fact that the RSI on the daily chart has worked off the extreme oversold condition without making much headway to the upside.
A break below 1600 will embolden the bears and may see an extended sell off back towards 1555-1560.
Today's video for subscribers looks at yesterday's action in more detail and discusses the current market conditions.