This ain't rocket science, folks. It's just a matter of paying attention to these numbers on the daily charts. The Russell 2000 warned for two days of a top at the 705-706 level. And now that index and the entire market have sold off following the filling of that gap.

Russell 2000 Calling another top as another gap is filled

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Of course it's never just one index or chart. And usually, the S&P finds its way into the mix.

This move up from last week's double-bottom low (on the continuation charts) was no exception. Here, as well, there was a very visible gap from 1354.70 to 1365.80 in the now-expired March contract beckoning. Monday's 1361 high was near the gap's midpoint, and that's as close as it would get.

Tuesday's lower high produced a bearish non-confirmation with the Nasdaq, which also signaled that some kind of pullback was near, which was another reason to sell into Tuesday's muted advance and look for the pullback, which I did, especially in the S&P.

The bigger picture is that there is much to like about the pattern in the S&P, not the least of which is last week's bullish island reversal pattern. Note that the selloff into last Thursday's lows held narrowly above that reversal. That was another sign that the rally might carry, which it has done.

S&P Futures A double bottom and Island Reversal marking the low

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