Recall that today is a quad witch in the options expiration, which typically bring a great deal of market manipulation in the days preceding.
The rally failed at 800 resistance, which would the neckline of an inverse H&S bottom, and the answer to bully's prayers.
Since the economy is not recovering six months ago, we expect that failure to stick and a new leg down to precipitate. This setup is easier to see on the second chart which is The Big Picture.
As always, we will wait for confirmation of this breakdown before taking positions of size. However the trend of our hedges has shifted to the short side at the second failure at 800 on the hourly charts.
“Modern tyranny is terror management. When the terrorist attack comes, remember that authoritarians exploit such events in order to consolidate power. The sudden disaster that requires the end of checks and balances, the dissolution of opposition parties, the suspension of freedom of expression, the right to a fair trial, and so on, is the oldest trick in the Hitlerian book. Do not fall for it.”
Timothy Snyder, On Tyranny