Nearing the trend

In a stunning move yesterday, SPX managed to close down a half a percent.  Sending panic to most investors as the majority didn't understand what the red on their screens meant.  One trader on the floor said "I thought my machine was broken, the market is only suppose to go up I couldn't believe it crashed".

Now SPX is sitting on the almost vertical up trendline since Feb. It tested it yesterday but at the end of day the market rallied off it.  Additionally SPX is close to support at 1174.  Watch for a break of that level and a the trendline. MACD is still showing divergences as is RSI.  As of 7:49EST the market looks to be opening down and that trendline may be broken.  Be careful taking longs here, the rally just might be fading. 

NYMO gave a short-term sell signal yesterday dipping below zero as well. The bearish divergence on NYMO is still active.

Keep an eye on oil today it is weak, if it starts to sell off the market can follow.  Although Oil may be retracing back to the base of its break out of 83.66, watch that level.