SPX 30-Minute Chart 1235-1268 Channel Failure

Note the test of the bottom rail of the channel at 1235 on late Thursday--early Friday, then a bounce. Now, today, Monday, failure at 1235 occurs. The nine day channel thru 1235-1268 has ended. See if price remains below or if it hops back up into the channel. At the least, a back kiss of 1235 may be in order. The light bulue circle, however, shows a target area where a lower low in price would then exhibit positive divergence to create a bounce.  The LOD today thus far is 1227.25. Thus, a move under 1227 should set things up to where markets can bounce. The 8 MA under the 34 MA is bearish. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.

Note Added 12/12/11 at 4:04 PM: SPX came back up to park itself at the bottom rail overnight. Closing print at 1236. The key sturdy support at 1235 holds for one more night.