Pulling Back

The indices are cooling off from the move originating at the February lows. Price action has been in keeping with the larger downtrend in place from May 2015. Looking closely on the 30 minute chart, we’re on the verge of a break down out of the upper pocket of the downtrend (between the top two blue lines).

S&P 500, 30 minute bars

S&P 500, 30 minute bars

In the near term, should we not get a breakdown, we may at least be looking at a downshift into the teal trend channel. Its too early to say we have a strong sell, or buy for that matter, but the next few days will be critical to identifying the levels that will define trade for the next few weeks.

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