Waterfall Context

This morning's giveback in equities may very well seem like the familiar "waterfalls" we have seen this year immediately in the wake of sharp rallies, whereby we give back recent spirited gains, and then some. 

However, as seasonality turns bullish for a bit we want to be a bit more open-minded this time around. In addition, as you can see for context on the 30-minute SPY (S&P 500's ETF) chart, below, the dip is still well above the basing process dating back about a week and a half. 

And with oil and a chunk of energy stocks reversing back to green as I write this after a major OPEC production cut this morning in Vienna I am on the lookout for the indices to follow suit, though perhaps not quite as convincingly. 

Still, the pertinent issue is whether we are in the midst of yet another immediate rollover or instead will use this dip to trap in shorts for a further squeeze. Unlike previous instances since August, especially, I am much more open to the latter this time around. 

3730 on the actual S&P seems to be the battleground area for bulls to defend this morning, currently being fought.