In my opinion, we are looking at the makings of a scrappy trading range, but by the terms of a breakout failure, today was a 'bull trap' for the S&P and shorting opportunity. Stops go on a close above today's high.
The Dow didn't lose its breakout, offering hope for bulls concerned with action in the S&P.
The Nasdaq remained ranged bound.
While the Russell 2000 felt the pain of the 200-day MA undercut, but didn't retest the May swing low.
For tomorrow, bulls will be wanting tight action which stays close to highs. Bears will want a big sell off, although it will likely take a number of sell off days to give bears back control of the market. Aggressive bears could look to the S&P 'bull trap' as an entry opportunity.
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