At this junction, you can decide to follow the Cataract Gulch Trail for some yards to get to Cataract Lake, stay at this smaller lake right in front of you or continue your hike along the Colorado Trail/CDT. The shore at the small lake offers room for 5+ tents, Cataract Lake has plenty of room for more camping. Moreover, there are big trout in Cataract Lake if you are into fishing.