In baseball if you swing and miss three times then you are out. On a chart if you see three failed attempts to break resistance...get out or short.
Each time the SP500 tries to regain the 200 day moving average it fails and it is immediately hit with selling. Sellers are in control and the market is still in correction mode.
Today Moody's downgraded Greece's debt which caused the market to give back early leads. The chart shows a picture of a move up to the 200 day on low volume. This means there is very little buying going on. In order for me to gain confidence in the markets I need to see a break through major resistance levels with conviction and that moment is not apparent yet.
Quite contrary three failed attempts to regain major support has failed. This causes me great concern because in a bull market the 200 day acts as support. In this case it is acting as resistance, which is typical of bear markets..buyers beware!