$S&P;500; UPDATE

$S&P;500; today printed (4,487) the level which we have been discussing since last few days. In our review here on 23rd,june, we were expecting this INDEX to put an annual TOP in zone of (4,450-4,500) but S&P exceeded (4,500) in JULY. there are valid arguments on quality of the entire rally since MARCH lows but let’s not go in that direction the broader point is how long this rally would last? Last week I projected 28th,JULY as an extremely critical date and coincidently markets registered their high on 27th,JULY on S&P, The major problem from late JUNE to late JULY was lack of strong CYCLE dates so that was the primary reason why markets failed to register a major reversal. even intraday moves were quite narrow. Cross-asset misslocation was one more factor which have resulted in choppy markets. Good part is that is back in sinc now. Going forward the volatility should come back. As a trader we are considering this decline as short term reversal. Until we do not get a SQUARING PATTERN breakdown on INDICES it wont be ideal to consider that next major leg lower have resumed. For S&P we would conform the PATTERN breakdown only below consecutive daily close below (4388) on cash. TIME wise we are at a very critical zone with tomorrow being a important date for extreme short term. after tom, critical dates would be 14th, 16th, and 29th,AUGUST.