Zooming out, The recent bearish cross by the moving averages on the daily chart backs the view that the current trend is only just beginning, so potentially has a long way to go. Clearly there have been several false starts to down trends this year, and we may be seeing another false start here. So long as the high from Thursday's US session holds, there is no reason to back away from a near term bearish stance.
Zooming out still further, to a long term view of the US stocks, in this case the Dow. A chart I've shown many times, as I consider it important. The Dow has formed a giant bearish megaphone pattern. If the megaphone is the correct interpretation of market behaviour, it will result in a decline to below the 2009 low. But wait, aren't we seeing an upside break from the megaphone? Not in my view, as the internals of the market (volume and breadth) are weak, making it more likely that we are seeing a throw over / false break. Also the market is now probing back below the top line.