SP500 suffered a breakout failure following its recent all-time high, slicing through the green lateral support area and plunged 50 index points to its 200-hour moving average (Chart 1).
While the late-February record high in SP500 has remained intact, other indexes such as the Dow, Nasdaq indexes and RUT were able to make new highs early this past week. This slight asynchronous top, when read in the context of subsequent price actions, appears to suggest that the current sell-off is likely a corrective pullback (Chart 1, green, blue) rather than a larger-degree trend change (Chart 1, red).
A rebound towards 2100 is also likely in sight. See Chart 2.
Chart 3 and Chart 4 show how recent price actions could fit into the lager tracking counts.
