trading behavior in the S&P remains constrained by a short-term sideways pattern and shown little evidence of a sustainable change in trend. Momentum has been strengthened but does not appear strong enough to generate widespread breakouts. 2700 is the line in the sand. There is a no reason to turn particularly bullish until this area is eclipsed
S&P’s rally attempt failed near formidable resistance, indicating the path with least resistance remains lower. If the index fails to climb above 2700 this week, then the next stop will be 2600 with the possibility of a brief breakdown below that level.
while several indicators remain supportive of further pullback, return of oversold conditions on an intraday basis might help putting put a short-term floor under the market. However, the bulls must hurdle and sustain above S&P’s 2700 or market will work off oversold conditions and fall under its own weight. With that said, the longer the index stays below 2700, the more vulnerable it is to lower prices