60 Min had the most damage done to it, breaking its 21, and 50 ema's. Notice the divergence on the MACD on the 60 min chart, very telling of the lack of strength behind the push to 1080.
But before you get real excited, on the daily, weekly and monthly charts. There was not much done technically that killed the bulls.
The daily chart is still showing divergence but support is still at 1054. This will be a key battle ground when the market gets to it. But before SPX gets there, it will have to break 1060 and before the market goes to 120000000 where CNBC think it will eventually top, it has to get above 1070 again.
The 1070 will be a lot harder to break now, since there are many bulls underwater from that level. If the market gets even close to there, expect some selling from the dummies who bought at 1075-1080 yesterday.
Yesterday provided a nice physiological win for the bears. The bulls had everything on their side and were slammed down. Momentum is leaning towards the bear side now but they really need the dollar to firm up before they can claim a victory.
