S&P 500 failed breakout and riding down trend line
Updated
Should have guessed that the morning rally in premarket was a setup. Overnight the market was down but around 8:30-10 it put in a rally. Instead of a breakout we corrected and riding down the trend line formed by the recent tops in the correction. We have been riding the correction coattails of that since. I guess the true jobs numbers and weakness of the economy are slowly sinking in and this bull rally is way up in the no support zone. Not sure what this means for the next few days. It is normal to get a retest of the ATH for a double top, but the S&P is so overextended that it may just be more down. I am still calling for a near term low around 3050 (back to June support area).
Note
This pattern is much clearer in my NASDAQ analysis, but it matches up well here also. The NDX looks to have a much higher profit alternative than the S&P.
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