The weekly bar shows that the S&P's are range bound - trading between 1300-1376. Having taken out last week's low - the Short term trend has turned to the downside. The next visible weekly reference below is 1320 area and below that the 1300 level.
Looking at the Daily Bar above - further continuation to the downside targets the 1320 level. This will be the second time we visit this area in July. The more times we revisit the same price level - the less likely that level will hold. Apple earnings miss will likely influence the market tomorrow.
The S&P's came within 4 handles of the 1320 level today. A late afternoon rumor from Europe triggered a short covering rally to 1335. That is also the mid point of today's range and a day time frame reference for tomorrow i.e. the Rally High. Price acceptance above that level will be the first sign of change. The market appears very short - shown on the profile by the 45 degree line that indicates that the POC did not decline in line with the sell off. This doesn't mean that the market cannot go lower. However, one has to be alert to the possibility of a short covering rally. Key level to watch is 1317-20 - do we find acceptance below that level and build lower Value?
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