The market continued yesterday’s slide and fell to just below the 1208.50 low put in on the first of the month. Volume increased to the downside. I mentioned earlier (in this post) that volatility had contracted and the market had entered an apex. Today, volatility began to expand again – at least during the morning session – and the market began to push outside of the apex, coming out the downside. However, the market stalled at the 1208 support level. The entire afternoon went sideways along this level after some stopping volume came in intraday. In the early overnight session, the S&Ps are trying to hold this level and rally up. We will see how far they get. A close below 1208 will be damaging for this market.
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