S&P 500 and other indexes such as Dow Jones and Nasdaq failed to go past 50 day moving average. This likely sets us up for a 200 day moving average touchdown. On the past 3 occasions, the 200 day moving average has provided good support to the markets as the indexes have bounced off 200 day moving average convincingly. Markets had all the ammunition to go higher, AMAZON reported stellar earnings, Intel beat convincingly. This market is not going to be pleased easily.

If we fail to hold well here, we are likely to fall to lower levels, perhaps retest of previous lows of 2530. Buying at 200 day moving average has worked well until now.