The SPX never did make any important higher highs, or lower lows so that trend remains unchanged as up. The Trend Finder bounced around between 25-50% bullish in that time span the FED released its report, because if that, I elected just to keep it at 25% bullish, until the market stabilizes tomorrow morning.
Breadth for the day ended at 2.71:1, decliners, nothing particularly strong, but on improved volume.
The SPX needs to have follow-thru tomorrow if indeed the correct count is a 1-2 down, if not, it will work its way higher challenging 1131.23, where it is very possible that it will break-thru, taking the stops out the shorts have, and create a bull trap where it will immediately reverse back down. The same story, only reversed happened last July when the SPX made a lower low below the previous low of 878.94 from mid-May, and bounced at 869.32 trapping the bears, in the biggest bear trap of the year.
The important highs and lows are on the above chart, with 1107.17 being the most important for the bears, a break below here would opens the gate to 1088.01. Breaking below 1111.58 would be an early warning sign that the up-trend is in trouble.
As far as putting together a bullish count, it is very tough unless this rally is a Leading Diagonal for the 1st wave up, or a long series of 1-2's. Again, I discount that series of 1-2's up because when this many stack-up, odds are that will not be the correct count.
TNX, which tracks the yields of 10 year treasury notes is still continuing to make lower lows, and is trapped inside the middle bearish Fib fan, and is firmly inside the down channel. A break, up, and out of either of these would be the first sign that a new up-trend might be starting to take place, other-wise, there is more downside to go.
7:42, 1131.23 is some tough resistance, if the SPX sells off with-out making that higher high, that really increases the chances for a longer-term sell-off, robbing the bulls of that higher high, only leaving lower highs, and lower lows for the last four months.
7:22, Possible that the SPX has put a top in, but some more downside is needed to confirm so, and a break below that previous low of 1107.17 would help. The SPX did break the trendline and the 200 day MA to the downside. One thing that is bugging me though, the Ending Diagonal did not have a throw-over for the 5th wave. If 1107.17 does get taken out, next support from a low would be down at 1088.01, the trend does remain up until the SPX starts making lower lows.
The Trend Finder has one of the buys going to a sell, moving the trend to 25% bullish, down from 50%.