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This chart exhibits the problem the market has right now. You do not want to see lower highs, but this is the pattern developing unless we get a quick rally... two lower highs since the peak high in early October


You can see the peak in early October (Oct 9 or so) - 1570s
Then on the Halloween Fed cut (Oct 31) you see a lower high - 1550s
Now (if and it is a big if) this "high" is even lower, than you have a bad trend - 1520s

Technicians will draw a line from the 3 peaks mentioned above and that is now the 'resistance,' and a pattern of new lower highs could be developing. Still too early to tell but we'd want to see a move back to S&P 1530+ or so, to see this pattern broken


Source: Is a Pattern of Lower Highs Developing?