Friday’s decline led to a serious breach of several supports. The breakdown breakout would be confirmed on another close below 2600, which would support near-term downside follow-through and a test of more important support in the 2530-2515 zone
the fact that Money Flow measure still hovers near multi-year lows as S&P inches toward key overhead resistance suggested that upside momentum is likely to be restrained, certainly for the short-term. The longer the index stays below 2700, the more vulnerable it is to lower prices.
last week’s recovery rally pushed the S&P up against the overhead resistance at the 2750-2760 zone. This resistance zone is too big and too important to fall quickly, so should not be surprised to see some backing and fillings over the next few days. Technically speaking, the longer the index stays below that level, the more vulnerable it is to lower prices