Overall the long term trend is still up. Short term is also up, however it is probably looking at a pull back in the coming days. Yesterdays closed formed a bearish cluster in the upper reversal zone on the market forecast study. This may or may not take a few days to mature but typically signals a market pull back. This observation is also supported by the RSI study which shows the market is extremely overbought, another indication of an imminent pull back.
Short term support looks like 1178 on the S&P.
Financial stocks and stocks yet to report earnings are not players right now. At least not financial stocks to the upside. Greece and Portugal being downgraded today has triggered a major sell off in todays market. As for the Wall St. reform bill, while it was blocked yesterday, it is not dead. Trend is the most important study, not the news. This is still a bull market, but it is heavily influenced by economic news. Trade light. Follow your rules.
Continue to trade breakouts on heavy volume, swing trades where appropriate. Volatility is higher due to todays big drop. Option premiums have gained due to days like today. This is an oppurtunity day, not just a down day. Limit complex spreads to calendars and double calendars.
add pictures later.
-J
Sensibly Ridiculous 