Looking at a 2 year daily chart, the SPX is just barely hanging on to the uptrend channel. Another down day and the trend is breached. In long winded sell offs like this it always seems like the selling will never stop, but it always does eventually and that may be the best low risk entry to trade to the upside. There is no question now based on the charts that we are in a downtrend (lower highs, lower lows), but there will still be some great opportunities to trade to the upside once some of these relief rallies begin to develop. Be careful out there as these volatile times create some swift reversals to both sides as we saw today.
SPX Daily Chart:
The Bigger Picture:In the bigger picture, if we pull out to a 20 Year / Monthly chart we can see that the SPX is hitting so old resistance levels and so far they're holding. These monthly moves obviously take much more time to develop, but so far we have the beginnings of a double top.
SPX 20 Year / Monthly Chart:
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