Nothing really changed today, with the mild decline. The SPX closed just on top of the key support level at 1248. The bulls are focusing on the triangle that I mentioned last night, because triangles are continuation patterns and thus after a period of consolidation the market should continue higher if this is indeed a triangle. On the other hand, 1,2,i,ii counts also quite often look like triangles. And, this count remains my favorite count until the upper channel trend line is breached to the upside.
Looking at the daily charts for the major indexes, the Nasdaq and Financials remain the weakest indexes, both trading below the mid line of their Bollinger Bands. The DOW and Transports the strongest. I tend to believe the Nasdaq is continuing to lead and the rest will follow. However, I’ll be watching for a close below 1248 or above the upper trend line tacking out first 1277.