Consolidation day

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