The S&P 500 and NASDAQ 100 have been falling right from the open. As pointed out this morning, the levels at 4172 and 13933 on the S&P and N100, respectively, are critical. If these levels don’t hold, we will dip down into the previous trading range and risk double tops in both indices.

With all the negative divergences on the daily charts at the latest peaks for both indexes, the market might have reached the intermediate peak we have been expecting – and this would favor the short side in day trading. 

Let’s see if the levels hold. Otherwise, you may be witnessing the 18-month cycle peak. It is too early to tell this morning, but carry that forward in your narrative.