Please look at the daily chart of the spx. Today was either a failure of demand or the drying up of supply. On an abnormally small range day we closed at the top on the least volume in months. Clearly neither demand nor supply kicked in to move the market, so we must wait and see. Perhaps other markets can give us a clue. The xlf had an upthrust to a new high Friday and gapped down today, clearly a bearish indication. The qqqq also had an upthrust friday with a small range and small volume, also bearish. In all of these markets, we need a large move with volume.

Finally let's look at the intra day. At "A" supply pressure had lessened to almost non existent. This should have triggered a large rally, especially since this was the second day in a row in which this happened. The confirming volume at 1 was pathetically small. At 2 supply dries up again and this time the rally leads to a low volume spike at the first 3. From the top of the first three to the top of the last 3 is .4 points. All of these threes are spikes and taken together these 4 spikes have little lifting power in around 2 hours. The result is not proportionate to the effort. 4 I believe to be supply checking a heavy demand.

So to lay my cards on the table. I believe today represents a failed rally attempt.