A Lower Low On Two Consecutive Days of Selling Pressure

Feels pretty negative (at least it presents the illusion of negativity). Last year we saw two significant market tops or reversals to the downside (one in January and one in April). In both cases, the initial day of selling was met by responsive buying as a topping pattern formed over a period of days. In the present case, the first significant down day (yesterday) was not met by responsive buying. Instead, we have made a lower low on two consecutive days of selling. Many would argue that this signals a further leg down. I will consider the alternative. First of all, today's close only represents a minor new low. Price is more important than time in this case. As long as the mid 1260s support holds on the ES, my expectation is to see a rally into the close tomorrow (perhaps to 1285). Obviously my opinion will change if the 1265 support does not hold. In that case, the ES will likely be headed for 1250-1255.