Well the bulls found themselves too close to the edge and woke up on the wrong side this morning. Every attempt to fill the gap was unsuccessful and the market turned lower to pause at another very important edge. The problem is of course that the last cliff was a mere 20 ft drop. This next one is a couple miles to the next ledge (sitting around SPX 900).
The market displayed a clear 5 wave pattern to the downside. The question from here is do the bulls test the breakdown at 1147 or do they get trapped on the wrong side of the gap for the unforeseeable future (my preference is let them be trapped!). Of course this is still conjecture until we get further downside confirmation that the top is in, but hey I love conjecture ;-).
Key resistance levels: 1139 and then 1147
Key support levels: 1133 and then 1113
Best to your trading
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