On the one hand, the breakout to another multi-year high print on the S&P 500 was clearly faded this morning. However, picking the top or declaring any one moment in the market in 2013 to be categorically bearish has been a huge blunder. That will change eventually, but for now based on the body of evidence this year the bears can say, at best, we are simply in-between rounds at the fight now.
If this is, indeed, that time for bears, then the head and shoulders top (blue lines, below, on the 30-minute SPY chart) needs to resolve sharply lower sooner than later. Otherwise, the market simply needs more time to grind sideways before we push higher yet.
Watch that $152 level into the bell to see if bears can get a close below.