We reduced risk again today in an incremental fashion. Until the market shows us something, we will continue to err on the side of safety. The chart below is an updated version of one we first showed on May 8. Four trendlines have been violated on a short-term basis.
We will get a DeMark buy setup today on the S&P 500, but the DeMark chart also has resistance between 1,343 and 1,350. A setup could lead to a reversal or a completed buy countdown (meaning more declines could follow).
It is possible the head-and-shoulders pattern we mentioned on May 13 could open the door for a push toward 1,280 to 1,306, but an oversold bounce is also a possibility.