As we expected, futures began pulling back from Friday's highs at 5724, which is the level I gave you onThursday. Our projection was that the pulback should lead to one final rally after this week's Fed,followed by a larger and more durable reversal.

The SPX7,722.94 weekly chart shows the price closed inside the channel on Friday, but this will likely prove to bea fakeout, as the index will open below the channel this week, confirming the bearish scenario.

The SOXX589.2/NDX30,807.932 ratio confirms the LT bear market.

I am expecting ES1!7,783.025 to test the 5655-5650 range early in the session. If this doesn't hold,we could see 5640, then the 5630s. Big support is 5590 3. I don't expect ES to extend this ST downsidebeyond this level.

Conversely a break above 5675 extend the upside to 5688-90