The deeper meaning of “bailout” headlines.

Decline retraces in reaction to Greek assurance to make payment.

This morning”s 2110.00 bias-down target was barely influential during the 2114.75-2102.25 plunge portion of this morning”s drop from 2118.00. It was overlapped by a Running Correction before resuming the plunge.

Oversold RSIs at the low require its eventual retest. And a corrective bounce to 2108.00 was retraced to within 1 tick of 2102.25 when a headline crossed. A bullish headline about Greece.

With stocks sliding, a Greek bailout equates to a bailout from the decline. The headline triggered a surge that extended to retest the Running Correction”s 2111.25 upper-end. Any higher would signal a much bigger rally underway, potentially marginalizing sellers for the day.

Otherwise, back under 2108.00 (being tested now, as the news is debunked or questioned) would more likely resume the decline — or, at least probe fresh lows down to 2099.75 or 2098.50.