I showed the 130 min chart on Friday with blue bars and said "This makes price very extended. So we are at key support in a stretched
condition. Outside of bad news, I would expect the market to
consolidate or bounce from here." We got the consolidation day today. Check out the chart now.
SPX ended the day +.48. It got above the key 1370 level for a while today, but failed to close up there. This is one of those situations where we are still oversold enough we could bounce, but we are in a strong enough down move that we could continue without a bounce. The low of the last bar is 1368 and the high is 1374. If we get outside that price range tomorrow I think there is pretty good odds of some continuation. Until we break the April low the market can still recover. However, I think it needs to get going very soon or it will be too late.
Bob
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