Currently, we have the most important index, the $SPX (via the SPY chart below) still clinging to the key support at the bottom of it’s rising channel. In addition to the fact that this channel is already long in the tooth (as evidenced by the duration of previous similar patterns shown on this chart) we can also see that the momentum is clearly waning at this point (as evidenced by the very muted reaction/bounce off the last tag of the bottom of the channel last week). We do have a decent support zone just below the bottom of the channel which is the May 2 -3 gap so best to wait for prices to drop below the 159.80ish area before adding too much additional short exposure (or removing longs).
Although not as significant an index IMO, it’s still worth noting that the DIA/$DJIA is already a step of ahead of the $SPX on the bearish case as prices already broke below it’s ascending channel, bounced off the same May 2nd -3rd gap support, and went on to make a successful backtest of the channel before turning back lower. As with the SPY, the next sell signal will come on a break below this first support zone.