The problem for the SPX was not in itself but rather one posed by the DJX here.
Yesterday R2, the level that caused all those problems last week (336 point pullback), was at 22100 and the DJX got as high as 22085.
So that is strike 2 but as they are a week apart we are not counting it as such, not to mention the point we are at in the expiry.
However it was enough to halt the advance here and so by default the SPX’s as well.
Although both now could find themselves in the same boat as both could now be vulnerable but for different reasons as here it seems the bulls have fled.
Range: 21700 to 22100
Type: Not bullish
The question we posed yesterday was “the really big question is whether or not the bulls will be as adamant in the mighty September?”
Judging by the activity in August and that here then we can’t see any evidence of those bulls rolling their positions.
This is actually quite ironic as the trouble August has had with R2 is well documented first at 22200 and then again at 22100, but here it would be in the Y2 ratio bandwidth that stretches all the way up to 22500.
Range: 21600 to 22500