1/27/2014

After declines earlier in the day, Monday's price action in the S&P saw a tiny bit of recovery only to close 8 points lower than it opened. The sell off is very aggressive right now, and the weekly looks like it's spelling more doom in the months ahead. That being said, I think after a lower open on Tuesday, we'll see a bounce toward old supports like 1800 - 1815. The hourly has built a pretty obvious bear flag that I think will either guide the bounce tomorrow or break and open the door for a blow below 1760.

There's a similar story on the Dow Jones Industrial - the bear flag on the hourly held at the close....but barely. 

The bears seem to have a decent grip on the market. If this continues the next logical support area to watch is the low from December on the indices - 1767.99 on the S&P, 15,703 on the Dow.

There is some Fed action on Wednesday, so the middle of this week is bound to be rocky, but it's unlikely the bulls will regain control this week. 

S&P 500 Daily Chart

S&P 500 Hourly Chart

Dow Jones Industrial Average Daily Chart

Dow Jones Industrial Average Hourly Chart