It couldn’t have happened much better today the market ran up early and retested a major downward trend line. A nice reversal bar was painted off this area of resistance on the daily chart. Currently it is my projection that a break to the upside of this line will bring us back to recent highs. However failure as we saw today suggest possibly more downside. Just a couple points below we will smack into the 20 ema and price action around this level will be critical towards how todays reversal bar leads us. A break of the downward trend line will likely have the s&p retesting recent highs. However a break of the 20ema and close below that moving average should pull us back down a bit. Nevertheless we have to see tomorrow’s price action to decide on direction.