SPX - watch to see if it gets support at this channel, or it's a bearish engulfing bar

As bearish as the SPX is starting to look today, with that nasty drop poking under yesterday's low, we still need to be careful this week. It may well be a precursor of what's to come. And it may well close with a bearish engulfing bar. But as I said, we still need to be careful before wading in short, as the SPX may yet receive interim support from the channel trendlines as I've marked on the hourly bar (chart at right).

We'll be sorting out the Elliott Wave implications as well of course. Part of that will depend on whether or not price loses support at this price channel.