So -- the markets are in a correction. Let's look at the charts to see what important levels we can discern.
The weekly chart shows there is support at the 135 level, which was established in early November of last year. However, notice the long-term trends as expressed by the EMAs are still bullish, the MACD is rising and the volume indicators show money flowing into the market.
The 60 minute chart shows that prices are rebounded to the 38.2% Fibonacci level and that the 50% level is right around resistance levels.
On the daily chart, notice that support has become resistance.
The transports, which were the first index to show signs of weakness, are now at longer-term support. Also note the shorter EMAs are turning lower. A move through this level would make the 200 day EMA the next support level.
Grains have hit resistance and have sold off to support. Yesterday's move was very large and obviously very important. As food prices are one of the areas I watch as possible contributors to a slowdown, this is good news.
Industrial metal have again been rebuffed from resistance levels and are sitting on Fib levels.
The above charts show that the markets are moving more clearly into correction mode. Metals have sold off; the transports continue to move lower, the SPYs have rebounded, but into resistance.