Bear Necessities

Every big rally needs a pullback and the bears got what they wanted on Tuesday. For now I still believe this pullback is just that, a retracement. I would like to this SPX hold 800 this week but we will see what happens. It is a holiday week and no trading on Friday. Alot of times in the days before a market holiday, the market volume will dry up and you will see a move against the primary trend. Right now the primary trend of the last month is up, so I would think the light volume could push this market lower and create a bear trap to those shorts that think they have gotten in at the top.

For Wednesday, the pivot is 815.75 and price is falling tonight to the low 800s so that area will be a critical spot to see if this market bounces or fails to the next area of support. I think if we lose 800 and close below then we could see the market retrace back to 771. Above 816 or so and I more bullish biased. It really just seems like the market is slowing and going to churn for a few days in this range perhaps so don't get chopped up.