Equities: Where Are We Now? (SPY)

We had posts on three consecutive days last week that gave a simplified view of the technical picture for the S&P 500.
June 4: "Equities: Dear Albert Edwards, Where is the Correction I Keep Hearing About? (MORT; MORL; REM)"
June 5: "Lines on Charts: S&P 500 Resting Languorously on Lower Channel Support as Credit Suisse Looks for 15% Upside (SPY)"
June 6: "'Time To Buy The Effing Dip?' (10-Day A/D Line Now In Extreme Oversold Territory)"

These came in the face of a generally declining market.

But there were a couple things going on that gave us some courage in the face of a 550 point drop for the.
 DJIA and a 49 point drop in the S&P 500 (here's the SPDR ETF as a proxy):
 

The June 5 post had this picture of the channel the market had been trading in:

 

While we went with this on June 6 showing the fake-out breakdowns of December, February, April and May:

Reading these chicken entrails is as much art as science but it looked as if we'd get one more repeat of the pattern before it became too popular and was traded away.

Finally, here's where we're at today, via Dragonfly Capital. It looks as if we have a shot at a 10 point move on the SPY, equal to a hundred point move off the bottom channel for the S&P:

The 500's all-time high, set May 22, is 1687.18 so we should have a couple days of "All-time Record High" headlines to draw Ma and Pa into the market before anything terrible happens to the longs.
I wouldn't trust the next sag below the channel but as usual, your mileage may vary.