The SPX opened today by gapping up and through the top boundary of a Symmetrical Triangle (ST) bound by ST-S2 and ST-R2. That breakout would imply a move up of the width of the ST at the breakout point, which is to about 875.
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Unfortunately, on the way up, the SPX ran into significant selling right at the level of the bottom of the 04/20/09 downside gap (DG420). The fact that the SPX couldn't fill DG420 nor make the ST implication, implies there are some sellers looking to exit at logical places (DG420).
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Since pulling the graph above the SPX has again moved up to test DG420 setting up support ST-S3, which is the typical post explosive move support that usually sets up.
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Below at UG424 is today's opening gap which should tend to pull the SPX back down but should also provide support as buyers should show up at that level.
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So today's battle is probably going to be fought between the gaps DG420 on the upside and UG424 on the downside. All of that action is just more of the sideways consolidation that I expected and doesn't mean much to me until the SPX moves down to ST-S1 which is barely visible on the graph.
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Since I pulled the graph above, the SPX has fallen off the table and is now nearing UG424. We should get a bump up off UG424. If UG424 fails to support the SPX, today's opening gap should fill and the SPX should move a little lower to retest ST-R2. If we close out the day at that level and at a loss for the day, that would set a possible opening drop to ST-S1 on Monday. In any case, my buying plan from yesterday remains intact until I cancel it.
