SPX -- Daily Chart

Weakness in the SPX since its late 2013 double top has intensified. There is even a baby
waterfall in place. SPX Daily The market has dropped below short term support levels
and it has broken under trend support which ran up from late Nov. '12 and extended higher
off the Jun. '13 low. The bottom panel of the chart shows the volatility index (VIX).
Increases above the 20 level on this index suggests growing caution among players.

The SPX has developed a moderate short term oversold. It is trading over 4% below the
25 day m/a and shows low RSI and MACD readings. Substantial short term technical
damage has been done, so any short term bounce is going to need to be substantial to
change negative SPX dynamics. The SPX would need to quickly move above the 1775
level to gain additional credibility as a quality bounce.