The SPY got support from it's 50-day, but there's also a previous congestion zone that supported price. The next level down is around $115, which would still put price at a "healthy correction" level.
Here's a look at the SPY vs. TLT correlation. A test and continuation of their respective trendlines was a telling sign.
Price has put in a higher low and sold off around 6.3%. Fairly average in the context of the '09-'10 rally.
However, we have seen this before....there was July '09, when price blew right through this confluence.
Everyone seems to be anticipating January 19th as being the "top," but there's a fine line between retracement off of a momentum move and a (yet another) run-the-stops short squeeze up to fresh highs. It shouldn't be long before we find out which it will be.
We've nearly filled the gap left from earlier this month:
We did breach the trendline in place since the March lows on strong momentum.
Speaking of trendlines, let's look at other markets with a similar theme:
Ditto the Q's:
The DIA, however, is lagging (but then look at some of the stocks that comprise the Dow Jones Industrial Average, who wants half of 'em?):
The Dow Jones Transportation Index leading the way:
These trendline breaches are important in the sense that when we do "bounce" we'll have to watch how these trendlines are tested and/or recovered. Take the Dow Jones Utilities Index for example. It breached its trendline, "bounced" back in an attempt to recover the trendline, only to fail.
Watch for snap-backs to these broken trendlines and whether they can recover or if they're seen as opportunities to sell.
Gold (GLD here) sits in a high, tight flag pattern currently
The Financial sector (XLF) had a false breakout this past week, but still bases under that $15.50 level
While GS is starting to build a potential bear flag (or potential Right Shoulder of a small H&S pattern)
XLE isn't getting the surge perhaps many were looking for, hasn't given up the Resistance to Support changeover.
The Transportation Index faltered this week. Watch for a breakdown of the "M"s midpoint:
The Dow Jones Utilities Index has been in a sideways channel since July (the long price stays contained within a range, the stronger the move out of that range).
Not something I typically look at, but here's the Dow Jones Equity REIT index, price looks to be "drooping" into that neckline, not good.
And finally, there's the SPY. A down week overall, but interesting where is bounced and found support to close this week. On the Monthly time frame you can see Price found support at September's High
and on the weekly you can see price bounced (on Friday in fact) off of last week's open price.
GS weekly put in a similar Cup & handle pattern, and is still chugging along. A measured move for GS puts it back at previous '07 highs!
Of course measured moves don't always pan out and there are "bumps" and fake-outs, but you have to at least consider....on second thought, I don't want to consider WFC or GS back at all time highs, that would be ridiculous, right!? 
Or does it? Give this enough time, and what might it look like? Yup! a big fat Cup & Handle!
Intriguing!
The SPY gaped up this morning and bounced off of my resistance pivot (coinciding with the morning's Open) all day long.
Check out the TICK divergences intra-day. I'm now using Richard Todd's "TICK Molestor," check it out here.
Today on the SPY showed a momentum sell divergence that ended up rolling over
While the Daily is also showing waning momentum while price pushes up on vapors.
Though the momentum divergence in the very early morning was the first opportunity to short (the gap-up open vs. the impulse move on Monday morning).
We closed on the previous day's support/intra-day value area. You can see it looking at the 5-min chart above, or by looking at the Market Profile.
Here's where we stand:
Tomorrow we'll see if we can test previous lows on strong momentum. Otherwise, we put in a higher low on weak momentum and work on a re-test of the highs.
