While SPX was all over the map today, it respected this support and closed at 1335.10.
Also, we've had 4 red candles in a row on the daily. There haven't been 5 in a row since July '10. While I'm certainly bearish in the medium and longer terms, I continue to feel we have one last push up before we're done with P[2].
Whether we get there from this trend line, or from the lower end of the rising wedge isn't terribly important unless you're a day trader. Key support remaining, in order: this trendline, the 1294 April low, and the 1280ish rising wedge. I would selectively add to short positions if/when each of those supports is taken out. In the meantime, I am modestly long as a short-term trade.
Several fed gov's were in the news yesterday, practically guaranteeing a +200K employment number for months to come -- stated with the kind of confidence that makes one wonder if the fix is in.
Look for a positive surprise when tomorrow's payroll/unemployment numbers are released. It will go a long way in reaffirming why today's data was anomalous (how many bus drivers could be on furlough at once?) and doesn't really count.
The key question: are market participants gullible enough to buy it again?
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