S&P 500: Healthy Consolidation or Is the Bull Run Over?

Even though I said I would be only posting links to articles this week, I couldn't help myself. The SPY is either going through a healthy consolidation, or the end of the bull run is here. It is too early to tell, either way we have seen a significant pullback in the last week.

I previously wrote in July that the 'Lehman Gap' was an important resistance point to watch on SPY. We have filled the Lehman Gap and are now pulling back. I also previously detailed some daily and weekly charts with trend lines. We could be looking at the 100 range as a support level on SPY.

Below are the updated charts. The first is a weekly chart with Fibonacci retracement levels (click to enlarge):

Now, a daily chart with some additional indicators showing a negative divergence - not good for bulls. In addition. as I have previously noted the volume on down days has generally been outpacing up days on SPY. In addtion, MarketClub's Trend Analysis of SPY now has it in 'Sideways mode' with a score of +55 (-100 to +100 scale). It still is on a Monthly and Weekly Buy signal, but I would be watching it very closely to see if it turns to a sell shortly (for their Free Trend Analysis on any security, click here):