I was saying on Friday morning that in all of the three instances since the start of 2014 when SPX broke back below the 5 DMA within two days, then a new low has been made before new highs were made. I had a look further back and that was also true in 2012 and 2013, though in both instances there was one instance that went on to make short term higher highs before those new lows were made.
That’s a concern for bulls here as SPX tested the lows on Friday but did not make a lower low. This low is therefore uncertain and the rally from it may fail, most likely at the open today, the test of the Thursday high, or a test of the daily middle band.
