http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=6&dy=0&id=p38955316076&a=266398464

Well, as Oscar Wilde said, there’s little comfort in the wise this side of paradise.  And obviously the time to have done something is obviously long past — so what is the situation right now?  Perilous, but not fatal.  Now one is waiting for the bear to finish off the last of the paniced snacks and yield to the law of gravity.  And our readers should be well aware that in concert with the bear that the contrarian traders have control of the market and will not yield it until the mood changes.  But at least there is an inflexion point here, as you see price resting on a support line and volume (perhaps) looking climactic.  That might perhaps presage a rally this week — a b (beta) wave as it were.  If we saw a lead pipe cinch we might day trade it, but do not be foolish enough to think that investment positions may be taken here.

We are still in the box and only a real bull can get us out:

weekly

or, actually a real bear.  We will be the first to run screaming down the street (Wall) with our hair on fire when the coast clears.  (Incidentally the Dow Theory has thrown off a sell signal.  One should always operate with extreme caution in such circumstances.)

http://stockcharts.com/h-sc/ui?s=%24SPX&p=W&yr=3&mn=0&dy=0&id=p20137649611&a=432305978