Markets Continue to Work Their Way Lower

Since our last update, the market has been stuck in a range of sorts.  About 1330 to 1365ish on the S&P 500.  The markets appears to be even weaker than I thought. 

Notice the true sign of a bear on this 30 minute chart. Lower lows and lower highs all the way down. There is nothing bullish about this chart. Todays lows breached the lows of the 12th and did it with heavier volume. Not good. I suspect a move up to the 1351 area at least on Friday. This is the gap from the 18th. Being that tomorrow is OPEX, we should see a move higher into the 1350 to 1360 region. I believe they will sell this rally and that the market will make new swing lows.

Once this rally is complete, I expect a move down the 1300 area pretty fast.  This should get the Dow Jones at its March lows and temporarily put some support into this market.  We will take it step by step and reassess when that happens. 

The Dow Jones continues to stairstep lower from that high put in at 13150.  Same setup as the S&P but more bearish.  The dow continues to be a leader on the downside.  The uptrend line from the January lows connected to the March lows is close and we need to keep a very close eye on that line.  If they smash the market through it, big trouble..and fast.

Notice how many of the banks continue to head lower.  There has been no relief for them and it doesnt look like its coming soon.