Market Setups

The market is not setting up that well for the bulls. I see two different things that might make the bull run stop for a while.

The chart below is of the $SPX and there are two sell signals that could play out. The first is a candle pattern that is forming today, because the market closed up yesterday this pattern has a better chance of playing out. Todays price action opened in the direction of the trend, but this morning the market made an abrupt turnaround. This formation is called a bearish engulfing pattern, which indicates the bears have taken control of the session. I can almost guarantee that this formation is being noticed by many traders and most likely they are acting on the pattern. The second is based on yesterdays low, when we made that low buying started to pick up through out the day. Stops were probably placed below the market, highlighted in white is where I would assume stops are. If we break into that area we could see liquidation of equity that causes traders to either take a loss or protect profit. Which could push the market lower until investors feel comfortable getting long. Again stay on your toes until things become more clear on market direction. My key levels on the $SPX 1080 and on the $RUT 600.