First of all the reverse head and shoulders is not perfect because the right shoulder "should" be an equal distance from the head as is the left shoulder but even as imperfect as it is, it is still a bullish pattern. Now if this pattern were to confirm then the market fall I would read that as very bearish, a bullish pattern that fails is quite bearish. But we will have to wait and see if that happens or not.
Next I would like to draw your attention to the bullish MACD divergence we saw in November (blue trend lines) and how that was telling us there was a very good possibility of a rally. The rest of the highs and lows were met with equal MACD highs and lows so I don't glean anything from them at all.
Now we are seeing another bullish MACD divergence (red trend lines) but we could be getting into an overbought scenario that will put a stop to any kind of rally until one of two things happen; 1. SPX moves sideways to burn it off or 2. SPX retraces back to the right shoulder.
I know I am only painting bullish pictures here but that is all I see. I know the economy is still in the dumps and unemployment is running rampant but this is what I see. Of course you can't discount the bullish MACD on the weekly SPX either so that may be helping my bullishness.