...following yesterdays non-confirming market internals, the SPX 500 today pressured by profit taking. Above the January 6 High *1278, downticks remain corrective.
...a successful defense of first line support will motivate the market to take out the *1300 Psych barrier to test the August 2008 High *1313 -with potential follow through to upper channel resistance current *1327 in the 3-month daily trading set-up-
…a sharp pull-back is expected in the set resistance zone with 6-month weekly trendline support current *1207 as the corrective target
Note: watch for an exhaustive break of the VIX down below support, followed by a break-out up setting the stage for the corrective shake-out