The Global Bond Selloff provided the fundamental backdrop for our projected down-up-down Thursday. Now the plunge of Amazon (AMZN, still in the mode of destroying competition by limiting their profit margins and disappointing shareholders for at least the immediate term) sets-up the potential for downside follow through.

Additionally, just an additional hint of what we've been saying by virtue of Alphabet (GOOGL) making their numbers but having that brief rally sold into... both of these reports .. Amazon & Google .. have a potential of playing off each other and leading the market lower.

As this occurs the S&P had yet another rally intraday that was absolutely without substance and destined to falter. That's been our view all week; a week that is post-Expiration and with the expected failing rebounds, with risk of an accelerated decline.

As the 'cushion' (technically) between the old overhead range (now slowly crumbling from 2140-2150 to 2130-2140 and nearing the threshold of a more critical 2110-2120 Dec. S&P area) has evaporated within a 'process' we've persistently described, this gets really interesting.

Bottom-line: a rather lengthy main video delves into most of this, with the conclusions you know; we're borderline readying to break lower at the same time that we were sufficiently above the earlier September or October lows that there was enough 'cushion' to hold it together... for awhile. That cushion is vanishing with risk of just cutting through those old lows if things start feeding on themselves and cascade lower.

Conclusion: of course we hold short from Dec. S&P 2167.