SPX attempted to rally today but once again failed to keep the upside momentum going. My expectation of today was that it would be a typical summer Friday, but clearly I was wrong. While it seemed that way in the morning, things definitely took a turn for the worse in the afternoon and into the close.

Chip and memory stocks are largely to blame again, led by INTC earnings. The Nasdaq once again dragged everything down with it and has now broken the June 9th lows I spoke about in my video over the weekend. On NQ, things are starting to look very bearish while SPX is still hanging on for dear life.

The daily candle on SPX is once again bearish, we see a clear long wick to the upside that rejected the mid-point of the expected move. SPX attempted to flip green for the week, immediately rejected the level, and then sold off over 50 points into the close. While the close is technically green, there is still a heavy bearish bias with today’s price action.

History told us that July is almost always bullish, but with just a week to go in the month, SPX is negative for the month and there is very little hope of NQ going green for the month. All of the big tech earnings next week would need to carry the load and rally both the indices.

Looking closely at the price action for the past few weeks, there is now a clear trend in SPX. We are at a critical support level and breaking this red line would be breaking a multi-week pattern.

This is currently a bearish pattern on SPX and the opening of next week will determine the next path the market takes.

Keeping things short today, but I will have move over the weekend in the weekly video where I will cover this pattern, key levels to watch for and of course the expected move for next week.

Stay tuned!