The big picture of the cash SPX shows that the index has violated its 1-year moving average at 1465 and has the form of an incomplete decline that points next into the 1430/25 target zone. Let's notice that the weekly RSI is pointed straight down and likely is a big warning signal to us that we should expect downside pressure to continue until a considerably oversold condition is established, which is another way of saying that we should look for the SPX to press below 1430/25 to test the powerful 2003-2007 trendline, now at 1390. Rallies from a near-term oversold condition should continue to be short-lived in the upcoming hours.
