Market Consolidating Below Resistance

As the market is an overlapping "mess" for the last two days, it certainly can suggest that we see that push to test major resistance in the 2870-75 region on the S&P 500 (SPX).  But, my overall expectations remain the same, especially since any further highs will develop further divergences, which have represented similar topping patterns in the recent past.

So far today the market has simply consolidated below this main 2870-75 SPX resistance region.  And, as long as we remain below that region, I still maintain an expectation of a (c) wave down.

However, in order to signal that the market is pulling back, we will need to see a sustained break of the 2845 level. 

Avi Gilburt is founder of