This past week saw further deterioration -- by the $SPX Index as well as the internal indicators. $SPX sold off, but then tried to snap back with a big rally on Thursday, but it is not all that convincing. But, in reality, the 100-point rally just seemed to be an oversold rally. It didn't even reach the declining 20-day Moving Average, much less challenge the downtrend (purple) line on the chart.
A week ago, it seemed that $SPX had a renewed upside momentum, as it was making new all- time highs and internal indicators were improving. But there has been no follow-through this week, and it seems that bullish momentum has been lost. The "culprit" seems to be an increase in T-Bond rates, although that hasn't mattered much before.
After the monster rally of 400 points in just a few days in early August, $SPX took a few days to consolidate. Now it is making new all-time highs once again. There should be some support in that consolidation area (7700-7800), with stronger support at the old highs (7620). There is also a gap at the 7600 level which would act as support as well.
