Path of Least Resistance Lower

The SPY broke down early this week and has since been consolidating below resistance. The near term and long term trend are both down and so is the path of least resistance.

The only fly in the ointment is the fact that stocks like FNM, FRE, and AIG are getting hammered so badly that the odds of the Fed stepping in to rescue them are increasing by the day. A Fed rescue will probably not save the market, but it could certainly lead to a gap up that hurts short positions.