Things looked very bearish for the first half of the trading session today. The S&P 500 tracking ETF (NYSEARCA:SPY) crashed down through 110 and 109, ultimately testing 108 (with a slight break below the 108 mark). The TRIN was reading bullish during the sell off, which took some validity away from it. The TICK and VIX were both reading quite bearish during the sell off. Right now, the VIX is pulling back and the TICK and TRIN are corroborating a move higher. Intraday I am seeing a bounce off of support at 108 and the beginnings of a cup and handle formation. If we do get a cup and handle here, expect 109 to act as resistance. If SPY closes at its current levels, the daily chart would show a bearish engulfing pattern. Right now it looks like SPY will continue to consolidate in its low base.