Markets eased up on light volume, consolidating Friday's gains. The semiconductor index suffered the worst of the selling, but its losses were well within the boundaries of a pullback.

While the Russell 2000 flashed a potential bearish harami cross; look for a retracement to the rising trendline.

The S&P 500 is compressing between a shorter-term and broader consolidation pattern, so it could make for an interesting breakout resolution yet to come.

Let’s take a look at the bigger picture of Market Structure and then zoom-in on the intraday structure to note key reference levels.

First, the broader picture starting with 2011:

To recap, when we say “Market Structure,” we’re referring to the progression or sequence of price highs and lows.

Markets are paused after an extended run from the 2009 lows. We are in a time correction as markets consolidate sideways. If we make higher highs we can adjust the trendline, but for now we wait and see.

Ever since observing positive momentum and internal divergences at the 1,260 level (200d SMA), the upside target for the S&P 500 has been a retest of the 1,300 level.

One could say the test happened today, and the current structure reveals now a negative internal (and momentum) divergence situation into this target resistance level, giving us a neat lesson in combining internals with key price levels and the trade opportunities that arise from them.

Above is a weekly chart of Apple Inc. (AAPL) and as you can see this stock has enjoyed a spectacular rally over the past 2 1/2 years..  You'll  also notice a very significant uptrend line that starts from early 2009. What makes this trendline so important is that it takes place on a weekly chart and that this line has been touched several times.
APPL slipped briefly below this line last week