The combined effect is a rejection by the 2015 topping zone in SP500 (Chart 2). SP500 is now testing a prior bearish trend line (Chart 2 red trend line), which could provide potential support for the near term. In addition, a successful head-and-shoulders pattern in ES which we have been tracking over the past week has now reached its projected target (Chart 3)
At a larger degree, SP500 appears to be following the red and blue scenarios we been tracking in Chart 4.
