After over two hours of trading, let's notice that the Emini S&P 500 (e-SPU) has reversed yesterday's late rally and sliced beneath the June channel support line, now at 1329, and has continued lower to 1319.75 so far. From a channel analysis perspective, the behavior of the index now is critical. Typically, in a healthy market, once the price structure has traversed the channel from the upper line to a breach of the lower line, buyers step up and propel the index back above the lower channel line into the confines of the channel boundaries ahead of an attempt to rally towards the upper channel line once again. However, in an unhealthy market, inability of the price structure to claw its way above the lower channel line on a sustained basis will be followed by a sharp downside continuation. In this case, inability of the e-SPU to claw its was back above 1329 into the closing bell likely will present a very negative profile that will point the index to a test of pior near term lows at 1306.75 to 1302.50. As of this moment, the bears are in directional control.