S&P crossroads..

Here's how it looks to me:

The recent fall has broken the current up trend from the lows..

so PRIMARY TREND DOWN comes back into play..

1. yellow lines..one more push up to test the trendline 850 max, then a fall to 720 level..form a HIGHER LOW, and then attack recent highs again..

HOWEVER...

a break back below descending trend line 3 ..resumption of down trend and NEW lows possible..

2.we rally up through here and break 870 level..(major resistance).. then in for a longer up move but working through the CONGESTION LEVEL..up to 940.. CHOPPY.. above 940 then 1020


At the moment seems like a lot of people are going for a rally from here (ie from near 770 level) gut feel markets do the unexpected!!