The ball is in the bear's court. It was in June that they last had a similar opportunity to take control of the markets. They were unsuccessful. But there is a difference this time. In June, the markets broke through the MA(50), quickly entered entered oversold territory and bounced right back. In contrast, this time the markets broke through the MA(50), did a quick head fake above the MA(50), only to move right back below MA(50) and did a good job of consolidating nearly the weekly lows last week. In short, its all wonderfully set up for the bears here. Now, its up to the bears to take step up and take the advantage. Will they do it?
The important support and resistance levels are marked on the S&P chart below.
Take care and good luck!