Clearly

The SPX 60min PnF chart clearly shows the recent run up after 1623.5 resistance was broken.  Clearly that level was significant so draw it on your charts as it will come up again in the future.  The last three trading days we saw a large move up closing near the highs on average volume on the first day and now the last two trading days we see small range days on decreasing volume.  As a matter of fact today's volume on the SPX was the lowest for the year if you minus the July 3th holiday session (and July 5th after the holiday Friday session when everyone was clearly on vacation).   We are bumping up against resistance at 1684.6 (today's high was 1684.51) so the volume is either indicating that demand has dried up or supply isn't present due to lack of selling pressure and the daily bars closing near the highs.  However, we do know that in order to break resistance we need an increase in demand to overcome supply which we clearly didn't have today.  A close below today's low on increased volume would be our first bearish signal since the run up.  This would clearly signal supply entering the market.  But boss how far will we fall? First I hate when people call me boss. Second, if a drop where to ensue a move to support is likely which we can see from our PnF chart below would be at the 1654.1 area.   Pretty clear.  

Say tuned for the most shocking trading session yet (was watching reruns of the bachelorette when writing this). 

Thanks for reading.