Could the market be looking at moving lower?
Everyone's been poised waiting to see if the market will give us a support break. Well today the SPY closed below the "magical" $88 level. So does this mean that we're breaking down with the bears? Not necessarily. Today’s close alone is not enough to determine that there is a breakthrough. The SPY have to hold this level and below for consecutive days in order to confirm the breakdown or we could end up seeing a strong bounce considering this is the second strong attempt to break through this level. This inconsistency is precisely what is reflected through the alligator mouth that is shown in the Mid Term Chart. Remembering again that this is a rolling chart it will take the majority of the next 5 days to confirm a move in either direction, which also supports that a defined directional break or move will take a few consecutive closing days to verify. So we go back to the question, is the market breaking down? My answer... I'll believe it when I see it.

Happy Trading!!!
Angie C.