Today's afternoon rally appears to be a small degree 2nd wave upward flat correction that is either already or nearly complete. If this is the case then tomorrow should be a big down day. Of course corrections can extend into more complex combinations so there is no guarantee, but when Thursdays close at the high, Fridays tend to be a down day.
Triangles are appearing all over the place. The XLU and XLE look set to break down out of 4th wave triangles. The XLF (financial ETF) has completed wave d of a small 4th wave triangle. Wave e should complete tomorrow, leading to more selling. The downside target on the XLF is 6.00 to 7.10 which gives an upside target on the SKF at 200 to 230. However, the SKF tends to overshoot in both directions so it could move above the target range.
On the bullish side, a lot of stocks are building strong bases right now in the face of the recent selling action which bodes well for after the bottom is in. Nevertheless, today's action is no cause to be bullish on the indexes.