(click to enlarge)
The opening range established back in January is 1429.42 - 1405.75. This value is 23.67, and is then added and subtracted to this range to get targets and levels to watch. It is best to watch these levels in conjunction with other indicators and not just use them as a stand alone system. They are more guideposts and act like magnets during market moves.
Below is a second chart of the S&P 500 with an indicator created off the idea of combining pivots with volume. As can be seen when the market reached these higher target levels from the opening range, the indicator showed divergence and how weak the internals really were. This indicator is really similar to an advance/decline indicator combined with volume and closing ranges.
A later post today will deal with scanning baskets of stocks using this indicator to look for stocks that are showing signs of strength. Combining this with scanning for triangle patterns, should create some good trading set ups for when this down move in the market is finished.