It's quite possible tomorrow will be the real test, i.e., failure to thrust above 3400 once more will trigger a sell which will have continuation to the down this time. I'm just reading the market wherever it is and trade accordingly. So, a gap up tomorrow should be good for a buy for the first part of the day at least.
I have four feeds and none show 10/7 daily having a lower low than 10/6 on the Globex ES. CQG is not one of my feeds. I never liked CQG. EDIT: Just saw your chart. CQG starts the new day at 4:30 Eastern instead 6:00 PM from the looks of it. I believe most algo's will be trading tomorrow as though today were and inside day.
I caught a 4 pound bass tonight. Just f'n around and I tossed a rubber worm out. First cast! The wind had blown the algae off to one side of the pond, so I cast out there while shootin' the sh*t with with some buds. BOOM. Ya know, when you hook into a fish like that... at least for a few minutes, every problem in the world disappears. I threw his fat ass back of course. I'll get him again later.
Not trying to be a pain here but while I guess you can say the candle is engulfing, technically it's not a classic bullish engulfing pattern because you're not reversing a downtrend. Contrast that with IWM on 9/25.