Click on Chart to EnlargeThe S&P 500 both made a new corrective intraday low and a new closing low, which confirms a downtrend is in force. Also, one of the concepts that I always talk about is looking for moves which completely retrace prior moves in less time than they took to form. The direction of the larger faster moves is basically the logical definition of a trend. Basically the market has more explosive power in the direction of the larger faster moves. The recent rally has now been completely retraced in less time than it took to form.
Based on this I feel that the best way to view this from a pattern logic standpoint is that we have completed a downward move (A) and an upward move (B). If the next downward pattern is the same % decline as (A) then that would put the S&P around 960.
The next chart support areas are 1030, 1020, 990, and 980, 950, and 870.
The Dow and Russell 2000 did not make new corrective intraday lows. So there is a divergence there. Honestly I don't read much into this, but once they all make new lows, then we may see a quick buying burst. However, I wouldn't expect it to last.
Also, the FXY trade has taken off nicely so far. So let's move the stop up above breakeven.
New Trade Action:
Move the GTC sell stop on FXY to 108.50.
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