Market Down, But Not Out

Today we saw the markets move slightly lower and we did break the very first upper support level that I was watching to give us a signal that we may have put in a local top. We are however well over several key pivot levels below that will need to break to give us an initial signal that we have indeed put in a larger degree top. 

So even though we remain stretched with a very full count in this region until we see a break of those lower support levels this market can still continue to grind higher. Should those support levels below get taken out we can then look for further signs of a top but until that occurs we still do not have any confirmation of that top being struck just yet. 

Drilling down to the 5min chart I am still going to be watching the 6032 level as the next key support/pivot level and breaking that level would be an early signal that we may have put in a larger top. We still would need to see that followed by a break under the 5982-5962 zone below to further confirm a top.

I will also note that at the time of this writing, we are starting to develop what may be a micro five down off of the highs on the SPX. I still would want to see this move a little lower followed by a corrective retrace higher to confirm this. If however we do develop a clean five down off of the highs it would give us one more piece of evidence that we have indeed struck at least a local top. I do however need to see a bit more price action before this can be further confirmed. 

Bigger picture nothing has changed from the weekend update so for the time being I am keeping an eye on the support levels noted above as well as the potential five down developing off of the highs.