The S&P Futures managed to rebound slightly after spending the majority of the day on a steep downward trajectory. The reversal did manage to set up a bullish impulse leg on the five minute chart, but with the way the markets are trading (volatility courtesy of your friendly neighbourhood HFT programmers) anything is possible.
Aside from a reversal at the pattern's midpoint on the five minute chart, a trend line from the August 9th lows on both the SPY and SPX also provided some timely support.
The Spiders will need more than a bullish impulse leg on the five minute chart to regain positive momentum. The daily chart is threatening the midpoint on the daily pattern ... still well above the $111.25 outlined as "P," but coupled with a bearish flag, the bulls have a lot of work ahead of them to get the S&P 500 back on track. Any serious breach of the midpoint will likely be followed by another wave of selling.
