After trading between 1840 and 1880 for almost two months the SPX broke below 1840 today. Before we get too bearish we need to see a confirmation. That is, either a continuation tomorrow or a backtest of 1840-50 followed by a reversal. If we don't get such a confirmation, we may get a similar pattern as last week. Then, the bulls were tricked after the SPX rallied above 1880.
If the market continues its drop tomorrow, we should see 1813ish next.
Starting tomorrow I'm going to post intraday updates again and also cover new markets (different indices, commodities and currencies)
Author: Patrick Eugster