Last week and the week before we highlighted this VOL profile when the SPX/MKT was trading @ 2707-40- suggesting that the SPX/MKT was a BUY and had limited downside based upon the position of the VOL cycle.

Here we see a S/T overbought situation where the UP side is limited and perhaps a bit more downside next few days before we can say the S/T- corrective cycle is over.

This schematic shows an overbought MKT- with contracting VOL-and a bearish S/T bar count (3,4,5,5)- * indicates S/T- exhaustion within a rotational MKT structure unless VOL is expanding-