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The S&P 500 Index futures rose during the session on Friday as it appears that there are gains being made in the fiscal talks in Washington DC. With that being said, the market stopped at 1408, and this is the beginning of significant noise. In fact, we think there is a stretch going all the way to the 1440 level that could cause problems for the S&P going forward.
Obviously, this is still a headline driven market. Because of that, making predictions about future motion will be difficult, but we do feel that the higher we go the more likely we are to see significant selling coming into the marketplace. Even as we get out of the fiscal talks, there are still plenty of headwinds to be found in the United States going forward. With this being said, we are looking for a resistant candle between here and 1440 to start selling aggressively.