Overnight rejection of price

[Soultrader]

After a boring market on Sept. 6, 2006 the overnight session moved price below the critical 11400 mark.

This break is very very key in interpreting market action. Why? This is a critical resistance level ever since May. This is also the August 18th high which the markets tested several times. It finally broke through this resistance on Sept. 1st. What worried me about this breakout on Sept. 1st was the lack of volume. However, the daily charts showed bullishness in regards to technicals.

This overnight rejection pushed prices below value and below the weekly pivot indicated by the chart post in attachment 1. The weekly pivot then acted as resistance as the market opened leading to a declining morning session. This information alone would of told you that today was a short selling day.

Today's break will be key to watch as it will test the trendline established from late July. Please see the second attachment for the daily chart.