Market drifting down in a channel
The market is appears to be moving downward in an orderly fashion and in a defined channel. After todays trading the pattern is becoming more tha obvious. SPX is flagging after a major bull run to the upside. This flag is again a bullish pattern which resolves to the upside. After todays trading the pattern is more visible. What was thought to be a bullish pennant, or a wedge like pattern, is now a downward channel.
Most stocks are also drifting sideways and down in channels, some actually hitting the 50 day moving averages. GOOG has the same pattern as SPX and may try to land on its 50 day at 835. HD also broken down today and may gun for the same 50 day line. XHB the builders ETF has been sold off after a major run and most of the builder stocks are now at the 50 or 200 day lines.
NDX has much bigger swings in the trading range, and its up and down movement are forming a bull flag.