S&P 500 Set to Tumble Lower in July (SPXU, SDS, SH)

Daily Chart

June ended with a pop in the market, but now it is back to reality in July.  How low could it go in July? 

The reality is that the market has been trending lower since the early days of April.  With three months of lower highs in place, and a lower low in June, there isn't much point in trying to fight it.  The trend is your friend, and the trend is clearly down. 

 

The index could still crawl up slightly, but with resistance just overhead, another test of the orange trendline support would be the next downside target for the S&P 500 index.  This level is approximately S&P 1245.