Primary indicator #1 has moved into the trending zone and primary indicator #2 is continuing to retreat in the trending zone. Of note, the leading directional indicator did swing bullish. This may indicate a quick market bounce, but it is too early to signal a good entry point. If it had happened with Primary #1 and Primary #2 in the green, then I would put my money to work. For now, it looks like a good time to keep money in a safe place with very little US equity market exposure.
Above is a screen capture from my thinkorswim platform. I've been looking at a study that comes with the software called volume profile. It is a measure of volume against price levels. You can see how much it resembles a bell curve (I added the blue bell curve line.) The concept is that the price should gravitate back toward the middle of the curve if it is out on the tails (edges.) Currently the SPY is out on a tail, and has moved down from the extreme edge.
When I zoom in a little it looks like the SPY is right in the middle of two small nodes. My observation has been that stocks / indexes don't stay there for long because there are not as many sellers / buyers. The question is, which way will it go? Based on my other data, I think we may see it bounce up a little, but then regain the momentum back to the larger volume areas.. which is bearish.