SPY breakout failed due to lack of extension; likely to drop to $760.40 support if yields stay high.

First off, guys, with the S&P 500, we see here on the S&P 500 daily chart. What happened over the last two trading days, guys, we had a rip roaring rally on Monday, pushing us above this declining trend line.

But then what happened here on Tuesday, guys? We didn't push up further than the high on Monday's candle. More or less, we didn't get any further extension. Look at what that does to the chart when price breaks out from a certain line. that that extension move is critical to maintain the breakout scenario on this chart.

And the S&P 500, guys, did not do it. We simply are coming straight down on the chart as you see here for the day.

Now, getting into the 10-minute time frame, we can see when we came down to that trend line, we actually pierced it, paused, and then tried to rally to get back above it, but then we just slid down further on the charts.

As we see here, we're closing down near the low range on the S&P 500. So, if the 10-year yields continue to be an issue, guys, we're likely to see the spiders come down, connect back down to this previous level of support, one that we've hit and pierce now several times. That's at $76040.