
The S&P is beginning to look increasingly heavy. Thursday’s close break below the uptrend from Nov, 55-dma and interim low/high from 6th Jun. and 11th Apr. was a clear warning of a larger downside correction developing. The high from May ’13 of 1,689 was set just below the parallel channel resistance off the Mar. ’09 low at 1,704. Monthly oscillators have started to turn lower from the top of its range having completed negative oscillator divergence against the new high. Furthermore, if the month of June closes below 1,608, a bearish monthly reversal just below the all-time will have very negative implications for the broader outlook. Thanks to John Noyce for this.