Yes, the SPX is down 1.2% so far today, although we have to see if it actually can close down more than 1% for the first time in quite a while. From a very big picture perspective, let's notice that today's decline merely takes the index back to the top channel zone (1390/70). To inflict some serious damage to the overall chart pattern that will point the SPX towards a total retrace of the width of the channel (to 1270), the SPX has to first slice below the sharply rising 10-week MA at 1373, and then break below its prior pullback low at 1360.98 from November 3. In addition, I will be watching the structure of the decline to see if it exhibits bearish form, which will provide us with important clues as to whether or not the June-November. uptrend remains dominant. For the time being, based on the enclosed chart structure, the bulls remain in control, although they are taking a well-deserved breather after a near-vertical assault since summer.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.