Whilst I remain bullish US stocks for a few reasons (see here for part of the explanation: https://steemit.com/trading/@technicaltrader/nasdaq-analysis-pennant-breakout-further-gains-expected), it's clear that in the short-term, the major indices are sitting on key levels.
First chart above shows the S&P 500 holding its uptrend for now. Should that break, the first zone of support is around the January highs. Below that, there is a small congestion zone ~2,785-2,800. Below that we would likely need to look toward the 2,580 level.
The chart of the mid-caps is another that needs to hold current levels. Price is currently sitting on the zone of support marked by the January and mid-year peaks. If it fails here, we will be looking at a failed breakout with small support ~357, with little significant support below that again until the February low.
One other chart I'm keeping a close eye on is IWC, the micro-cap ETF. It looks to be forming an inverse triangle but should it break support and the pattern fail, it would mark a significantly bearish event.
Until these levels conclusively break, I still believe in the long-term bullish outlook but we have clear lines in the sand for which we will need to consider bearish scenario's in the intermediate term at least.