Retaking the 2800 neckline area invalidates the H&S pattern and makes turns the outlook quite bullish.
Further instability likely. ES 2650 area definitely in play. RTY close to 39 month moving average. Elevated fear in market.
Current action is revolving around how much of the monthly February and January candles will be chewed up in this decline.
Monthly $SPX suggests 2510 as the normal worst case scenario. A move down to mid 2700s more likely to happen before a serious attempt to make new highs.
Prices are holding above last week's low and long term moving averages. The recent weakness isn't as serious as that of Spring and Fall of 2018.
Markets appear to settling into a trading range. Further weakness is probable but not likely to be very alarming.
Monday loss was major buy opportunity. State change improved today. Linear regression slope strategy had buy signal today.
Increased volatility down here, 52 week moving average threatened. Into area of October through December 2018 tops.
The initial selling bout has almost run it's course, usually blue sequences don't last more than 8 consecutive candles. The last week and a half has given us a crash course on not buying dubious candles, and how good the market is putting lipstick on pigs . Days where closes are lower than the open are usually not good buy points.
Current weakness may be contained but real test will see if a new high can be made soon. Weakness today makes Friday and Monday action seem more like a blowoff than an indication of strong underlying demand.