First off cheers to our 1220's call back in January/February of this year, it was certainly an uphill battle since no one believed it. Turns out we called the top so far to the very point. Congrats to any and everyone who was able to capitilize on that market move!
We are looking here at a daily price chart of the SP 500 cash index, after putting what in my opinion is a low that will stick for awhile (more on this later) at the 1010 level in the SP 500, we had a couple measured moves long into an eventual double top at the 1130 post fed comments.
What proceeded was a full 50% retracement and a previous unfilled gap (*1*) which was hit on Monday, it called the low and we rallied from there.
What happended yesterday is that we ran into a minor 50% short setup opposing the long setup. That area provided great shorting opportunity and caught the high of the day.
As for now, bulls have control of the short term direction of this market, but resistance still stands @ 1099, 1106, and a previous unfilled gap @ 1121.
However I believe these resistance levels will provide only temporary resistance as the long setup target of 1155 becomes achieved. We'll take it day by day as things progress, but for now path of least resistance is UP.