After hours yesterday, the futures looked as though they were going to break out to the upside.
This morning they look like they're getting ready to break lower, as they failed to breakout and are currently trading heavy, most likely due to China's rate hike.
The gap at 1319.45 mentioned yesterday on the cash index could be in play today. At the very least, 1325.82 should be tested.
I mentioned that the market should be considered to be headed higher until proven wrong. I still feel that way. However, there are mounting non-confirmations among the indices, notably the Russell, the Nasdaq, the Dow utilities, and the S&P.
If the S&P cash were to trade below 1305.26, the door would be open to more downside.
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