Return Moves in SP500 June 11 Contract off the 1252 Globex Low Will Run into Overhead Trouble

Initial short term support overnight for the June contract will be 1255-1257. Remember the year close on the March contract is 4 points below the overnight low. IF for any reason 1255 fails, Plan on seeing 1248 on the June contract and the March contract returning to unchanged on the year and closing the bull gap left open since Jan 3.

I will have to update supports on any trade below unchanged at 1253 on the March contract should the short term crisis of confidence get any worse than it is this evening. But to reiterate, the anticipated broad support for the intermediate trend is 1217-1234. What a god awful way to get there too.

On the way down to 1252 this evening, the bulls did try to defend 1267 but could only muster a 6-7 point bounce to 1273.50. This is best viewed on either the 15 min chart or the point and figure chart (both shown below). The bearish 45 degree angle on the point and figure suggests the SP500 will have trouble on the initial challenge of 1267-1268. The 15 minute chart suggests the bearish momentum will be considerable around 1273 by the time the European markets open up, and 1267-1268 as we head to the opening of the US stock market on Tuesday morning.