In no way, after yesterday's pop, did I expect to be seeing a retest of the 200 day moving average the very next day - but lo and behold low of the day 1263.54. 200 day exponential moving average? 1263. That technical analysis gobblygook is like witchcraft - (click chart to expand).
We have the obligatory cursory bounce... if I had any index shorts I put on yesterday in the 1290s I'd cover it here, and then put new ones on if the 200 day is broken on a closing basis.
That said a break of the 200 day will have bulls finally throwing in the towel - the same guys who have been trying to buy a dip the past two weeks. So if you get some panic selling, it will be time to be quite cautious on the short side as well. Today is the first day out of the past 6.5 weeks I sense any whiff of panic. Panic gets me incrementally more bullish.
This is much more fun than the slow drip up from last September thru February, for peeps like me.