Oops Argentina!

Yesterday's non response to the Fed + the overnight selloff (Argentina probable default) indicate that a Sell Signal should occur today at the open. It is clear that we need a pullback – but how far down?

Initial support indicated by MOB is 1945 at the 55EMA, then 1935, then 1920s.

As sell signals can rapidly develop into Buy signals at lower levels, I have drawn a possible T structure that could develop out of this, and will re-draw daily.

Chart of S&P500 for 31 July 2014

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