Last weekend I had suggested that the first week of October looked bearish (even though I was expecting a moderate bounce last week). We did see the moderate bounce last week, and now the current configuration appears bearish.
The analysis is further confirming that view. Earlier in September I had shown a comparison to NDX. At that time I had suggested that a firming in NDX relative to SPX was a positive indicator. Now NDX is weaker.
SPX appears poised to test below 1100 on this dip.