As the title suggests, the S&P's great start to the day, what started off as a bullish
day, has instead shown another sign that it's nearly three month long rally is running out of steam. As can be seen, the red-dotted line has served as a support range for the market up until March's dump. Now what was support is showing strong signs of becoming the new resistance. With gradually falling buy volume
and increasing selling volume
, it's becoming ever more likely that we're witnessing the formation of the right shoulder on what is shaping up to be a long term head and shoulders
pattern. At any rate, my suggestion is for investors to exert caution! Active investors should consider aggressive stop losses; if not securing profits in preparation for what it appears will be a strong, sustained correction.