Although the market rallied above my 835, we still closed at low of the day. That is a good sign for the bears. What’s bad, is that there is a possible IHS in the making (see the chart below).

For the past month or so, the market was able to find support at 800-820 level. Every time we were in this range, we turned around pretty quick. How long could it last? Well, the general TA rule is, if the support/resistance is tested multiple times, at some point it will break through that area, and the longer this area holds, the more brutal will be the breakdown/breakout.

So, I tend to believe that this is the case with the market today. Here is what to expect next week:

Will be keeping an eye on [[spy]] levels 82.50-82.20 and 84.00-84.30. As I have written before, breakout/breakdown will indicate further direction.