We Almost Touched Double Top, Now What?

To my surprise, we approached double top today. I didn't participate in the low volume move because I was waiting for a bit more of a retracement before seeing an ascent to the infamous highs of January. So the market moved without me. It was a good sign that we didn't touch the highs, because I believe that if/when we touch them, we are going to blast up through them. It is good we didn't touch them on a personal level, because i want to be in that move if/when it happens.

Regarding the late day sell-off, I am still with the same thought process that I shared in my previous post. I am looking for a further move down to possibly the $1127.50 level on the ES. If the market has good downward strength at that point, I will look to the $1121ish price point to buy back into this market.

One thing to note, with the bottoming tail we saw in this afternoon's sell-off, the SPY touched an uptrend resistance line dating back to the 2/25 pivot and bounced up from there (sorry not to post any charts today). We need to break through that trend line before we can move down any further. If we don't, we may retest the highs tomorrow. Yes, that means we have to be ready for the potential that we break on through to the other side, the side of new highs. At the moment, futures are more or less flat, so we'll have to wait and see if the market picks a direction before tomorrow's open.

Overall though, the little sell-off offered more bearish signs. As you can see we got the highest volume or market participation on the down move. There was minuscule volume as the markets inched upward throughout the morning and early afternoon. So, future outlook remains bearish.