Equity markets showed, if you can you believe it, WEAKNESS today! Shock of all shocks...it CAN go down. I was beginning to wonder.
 
There's significant resistance right above these levels so it really should be no surprise that the market has struggled two of the past three days. If it's down tomorrow....nah...it can't go down AGAIN! Not this market. It hasn't been down more than two days in a row since the March bottom! That's quite a streak. Tomorrow wouldn't make three in a row but it would make 3 out of 4 and that would be a change of character.

There is a trend line on the S&P that one more good down day could break. You draw it from the March low through the mid to late April lows. The Nasdaq 100 has already broken it's trend line so tech may it may be leading any pullback here. A break of that trend line will definitely bring out some sellers, I'm just not sure how many.

Right now the burden is on the bears to prove they can seize control once again. I doubt they'll have much extended success in the near term. A move down through 875 and 850 will be very difficult to come by anytime soon as many, many traders stand ready to deploy what capital they have left at those levels. 

That's why I believe that, at most, any significant decline would only signal the end of phase one of this advance. I would then expect the rally to resume and higher prices to follow. 

However, I could be wrong. The rally could just die and rollover right here and the bear could return. It would take a strong move down through 850 and then 820 to get me to think that may be occurring. Right now I still consider that to be a low probability event, but never say never.