Friday’s decline breached three prior lows, two of them ‘external’, suggesting there was more urgency to the selloff than appeared. This will shift my short-term bias from bullish to cautious even though a somewhat bigger picture suggests the weakness is merely corrective. If it continues on Monday, taking out a 2792.50 low recorded on July 22, that would generate a bearish impulse leg of still larger degree, beckoning even greater caution. In the process, it would also diminish the case for a rally to new all-time highs — a prospect that I raised here earlier. ______ UPDATE (July 30, 7:17 p.m.): Night owls should jump on it if the futures trip a ‘counterintuitive’ buy signal coming off a low that occurs between the two labeled lows.
