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Today's trading resulted in a close just a touch below the 2219 pivot point which has been in play since mid November. The Nasdaq fell in late afternoon trade due, according to some, to lack of institutional participation in this holiday week.
If the market closes below LL1 tomorrow we can expect a measured move lower from the H&S Top in the 32% retracement area of the October - Novemeber rally. This could be positive for the market overall if the pullback occurs in an orderly fashion.
LH designates a lower high and LL designates a lower low. Since early December the Nasdaq has carved out two lower highs and one lower low the latter of which could be taken out shortly.
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