Price continues to trade within an intraday downtrend as the sell-phase continues.
There’s a clear pathway developing, but no guarantee price will follow it.
Let’s chart the pathway and highlight the top trending stocks of the session:
Today we saw a (near) test of the 200 day SMA as I highlighted in this morning’s update.
Beyond that, we’re still in this game-planning mode of “Will the market repeat an intervention pattern or will this time be different” which frames our short-term strategies in this broader context.
Nevertheless, the intraday pathway is lower but price is testing the lower boundary of the falling range.
This would suggest – at least short-term – that buyers could rally the market again toward the falling upper trendline near 1,960.
However, a touch of additional selling could collapse the market straight down – even after all the selling we’ve already seen (reference July 2011).