The market is circling back down to the area from where it rallied last week. The 30-minute SPY chart below indicating a confirmed head and shoulders bearish top (on this timeframe) dating back to late-last week (purple lines).
On the S&P 500 Index, I continue to watch 1563 as a critical first major level of support. Below there on a closing basis, and the door quickly opens up to test of 1548 and 1538.
We probably should see an intraday bounce here into the close, like we have so many times in 2013. Keep in mind, though, when the market does change character if does so in a cold and brutal manner, with little regard for those not nimble enough to change themselves.
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