Yesterday the market gapped down a small amount and quickly rallied to fill the gap. It consolidated sideways for the remainder of the first hour of trading and then rallied sharply into the prior daily highs at “3” to set the high for the day right at the 10.30 reversal time. From there the market fell for the entire day staying in a tight five minute downtrend all the way until the 2.15 reversal time where it began a sideways trend to close out the day. This left a red bar on the daily chart that engulfed the prior two trading days although it was only a medium-size bar. This is all happening of course at the top of the daily consolidation and the SPY was similar but slightly weaker on the daily chart. Note that “2” is exactly where it was in yesterday’s chart and this is exactly the level the market sought out. It is likely morning trading or perhaps longer will stay sloppy and sideways somewhere between “1” and “2”. Is quite likely the market will see a series of very small daily bars that are bleeding lower. There are various possible support areas on the daily chart and anyone is too difficult call so prices finding support will be a matter of the hourly chart reversing trends at some point if the market is going to find a level above the critical support level at “4”.