Yesterday the S&P fell 5 points shy of the next target, busting
out the next long as support and stops just under the 2715
break line were hit and so turning a 12 point profit into a 2
or 3 point loss. Not so good.
It looks as if it will fall further now to retest 2669 and maybe
spike as low as 2661 level but should bounce from there at
lowest if it is to show stabilty today.
if wrong and this 2661 level fails to hold up later it will likely fall
away further to 2626-2600 range where it becomes a buy
again with stops below 2590.
So far this decline remains a standard correction or deviation
of 10% - 10% off the top = 2584, the low was 2592 - and it can
at worst fall 11% to 2555 but no lower if this is to remain a
'standard' correction. Should this level fail at any point this
week it will tip this index into serious bear territory - the
decline will then likely extend to 2584, then to 2545 and then
to 2488 where would look to buy once more if this kind of
price action unfolds from here. Don't think it will so far, but
we still need a plan B here, just in case.