Two weeks ago, we posited that market internals had improved considerably since the April 10th low, and were in overbought territory. This, in our opinion, limited the chances for an upside breakout or sustained rally.

This week the pendulum has swung in the opposite direction. Market internals are approaching oversold levels in both the medium:

and in the short term:

SPX weekly has fallen below the pivot line once again. This gives bears only a slight edge for the time being, since both the daily and weekly trend is flat for the moment:

Support levels remain the same as two weeks ago -- 1360, 1340 and 1320. Resistance is at 1415 and 1422:

With the soon to be released OT Fibonacci app you will be able to automatically keep track of these levels in different timeframes.