« Chart in Focus: Break of 20DMA on S&P-500 (1) »

The chart of S&P-500, specifically the relationship between price levels (on a closing basis) and the 20dMA on SPX, is the current "chart in focus."

This index, along with several other majors, made a bearish break of its 20dMA on Monday. That move arguably confirmed the various sell signals that we'd highlighted over the previous week or two.

And, as long as the indices remain below their 20dMAs (we'd put emphasis on the plight of the king of all indices - the S&P-500), traders will want to assume that at the very least a correction of the recent (month-long) leg of rally is taking place.

If important support levels (as described in the weekly and nightly commentary pieces in the Members Area) are broken, traders will start to look at this move as a potential correction of the intermediate trend bull move off the March lows.