Correction or Top Confirmation

The market comments after the close yesterday seemed to be of two types, the most prevalent one was that this was a correction that has a little more to go before you buy with both hands and a few comments stated flatly that what had happened was that a major top had been confirmed.

Obviously I would fall into the last group, and more definitively the group that sees this as a long term top, not a trading top.  At the moment we see a broad trading range developing between 1709 and 1991 on the S&P with the level one swing point at 1850.  This would break down to a current trading resistance level of 1921 and  a current trading support level at 1785 as the market ratchets into lower trading ranges.

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