The first warning for bulls would be sustained trade south of the black channel (noted on Wednesday as the first downside target). If that channel holds, then no harm, no foul.
As those of you who own theodolites have no doubt already realized, SPX then bounced right at the black channel:
So technically the uptrend is still intact and doing just fine -- for now. That said, the decline looks enough like an impulse that it's worth being very cautious here if you're a bull. The chart below shows what might happen if this is a bear move within a larger bull wave. If this is the start of a larger bear wave, then "look out below" -- so things could get much worse than this. And we're not far from the invalidation level (5969) for bearish things, so...
In conclusion, on the one hand, bears didn't damage the uptrend even a little, so from a technical standpoint, bulls still have the ball. On the other hand, the potential impulse down does give bears the best shot they've had all month. And again, north of 5969 invalidates any hope of that last decline being an impulse. Trade safe.
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