S&P Pennant Resolving or Bouncing?

****UPDATE:  The S&P is pushing below its pennant support line…

Here is what I noted this morning:  The S&P has pushed to the bottom of a pennant pattern that has formed over the last month or two.

 

One could play this for a short term bounce here, or wait for a convincing break to the downside before laying in some shorts.  In the larger context, a break to the downside here would seem to suggest that there is indeed very firm resistance at the 200 day, and the pattern replica from 2006-2008 continues.

 

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