UPDATE: 10:25 AM PDT
The hourly MACD and histogram just went officially bearish. But we should get a bounce soon, as 1298.61 is just around the corner. That level is important to bulls still looking at this as a corrective wave for the bull run.
UPDATE: 7:30 AM PDT
Here's the H&S setting up on SPX.
UPDATE: 6:15 AM PDT
There's a possible H&S pattern setting up on the S&P 500 -- seen here on the hourly futures chart. If it completes, it points to 1283 on the downside.
With any decent decline today, we should finally see the SPX histogram turn negative and a bearish STO cross on the daily charts.
ORIGINAL POST: 4:40 AM PDT
The market seems to like what it sees in the JPM earnings report. Haven't sorted through it yet, but I wouldn't put much stock in it, as bank earnings reports are masterpieces of obfuscation lately -- particularly with respect to loan loss reserves.
In the meantime, I'm watching what could turn out to be another bearish Bat Pattern evolve.
If the market rebounds strongly over the next few days with a debt ceiling solution, watch for a reversal in the 1342-1348 area (/ES).