After hanging on and hanging on and hanging on and completely intoxicating the bulls, today the market gave them what they thought no longer existed...a good butt whoopin!

875 proved to be the magic number after all, as the S&P hit it and was repelled Friday.  The pattern, which appeared to be a large ascending wedge, turned out to actually be two ending patterns linked together.  

The late March formation was, in hindsight, a megaphone pattern that broke down right at the end of March. It then led to an ascending wedge, but a smaller one than I thought existed before. The "combo" pattern allowed for one more up move to, you guessed it, 875.

875 was a natural resistance level I'm sure many traders have been watching, and, therefore, ready to sell. It marks the February highs and is the perfect place to continue the inverse H&S pattern.  Volume expanded significantly as I would expect in this particular case. However, I'm not sure it carries the same negative connotations it normally would because of the setup.

Just as a move to 875 was almost too good to be true, a move now to 800 would fall into the same category. I say this simply because of the inverse H&S pattern, not because of any particular fibonacci numbers.

So tonight you can buy weakness near 800. If it breaks significantly below that, say 775, something other than the inverse H&S pattern may be in play. Understand though, that a break of those levels doesn't automatically mean the uptrend from the March low is finished. It'll simply mean that it's unfolding in a different way.

By the way......my girls team lost a 10-7 thriller at the park tonight. There apparently is life outside of the markets! Go figure.