BKX is very close to a full-fledged breakdown if it can not get its act together. It has broke below the long-term support of the green bullish Fib fan and might be entering the middle section of the bearish fan. If BKX does breakdown and start printing lower lows, the major indexes will suffer and most likely follow suit. The SPX cannot have a sustained rally if the Financials are heading south making major lower lows. Goldman Sachs is getting hammered today, down currently 3.26%!!!
Odds are best right now for the SPX to be working on the b of B of 4 down wave, before the SPX breaks above 1227 for get the 5th wave put in. I am still nervous about this count because the Russell is not in sync with the SPX and am keeping the option of a larger sell-off on the radar.