SPX: Confirmation

(Click On Chart To Enlarge)

As far as confirmation is concerned, we don't always get it CLEARLY spelled out to us in the chart, but this time we did. In the SPX, for example, we got:

1. June 17 - (a) failure at the bottom of the Bull Flag (that wasn't bullish) telling us, "Yes, former support IS now resistance. (b) That candle also was Bearish Engulfing pattern; (c) that candle also was a Key Reversal Day. It made a "higher high," then CLOSED below the low of the prior session.

2. June 20 - a CLOSE below the neckline of the H&S Top

3. June 25 - a retest and failure of the broken neckline at the Fed announcement. The high was 1335.63 at 3PM, confirming, "Yes, that broken neckline IS resistance."

The SPX came off that resistance to 1322 into the close on Fed day, and we can see, technically, with the above bearish confirmations why the market was so vulnerable to the downside yesterday.

It wasn't ALL Goldman's fault (they put C and GM on their Conviction Sell List), but we'll go ahead and blame them anyway since they didn't help out any ;)