Markets continue a short term consolidation and test of support.

Here is our chart we are watching for key support and resistance levels.



Notice how we touched off of the 200 day moving average before reversing. The next support line that could serve as a floor for this move comes in right around 1390.

For the next attack on the 200day that has a chance of blasting through will take some sort of a catalyst more than likely. With a strong earnings season behind us this could be a sharp decline in oil which has been serving as the excuse to keep a lid on prices at this point.

Looking at our intermediate term indicators, we are still in great shape with no deceleration apparent.