Peering at price action, the S&P 500 chart has the markings of an index ready to crater. Our double loop ending pattern (yes, I know you won't find that in any TA textbooks, but that's what makes it valuable) suffered a steep drop away from the downtrend line, and today's action took a form which typically leads to another steep drop within a couple of sessions... a classic narrow-range consolidation.
Or did it?
Like yesterday, the price pattern is unfolding in a manner to support our scenario "C", but volume isn't cooperating. Being a stickler on volume here may seem a bit picky, but improper volume patterns have helped me root out head fakes in the past. Let's see if the intraday action can provide any more clues:
I'll bet sentiment is heavily leaning toward an end-of-the-world meltdown from here, but personally, I wouldn't be surprised to see a a rocket shot past SPX 900 in the immediate future. The dollar isn't cooperating just yet, but let's give it another day, shall we?