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The S&P500 Index had a fairly interesting session on Monday, as it initially fell only to turn around and bounce to form a hammer. The hammer of course is pressing the resistance level above which is also considered to be massive in its go. The 1425 level represents the highs from April, and this would in fact be a return trip from that fall if we were to clear it.
The index is currently sitting at the top of an up trending channel, so the fact that this market is continue to press higher really is impressive in that sense. If we manage to break higher, this would be smashing through two separate resistance levels and have us buying S&P 500 futures. This could also be a signal to start buying higher beta companies, perhaps even financials for once.
As for selling this market, we could make a play for that but it would have to be under the 1400 level. Even if that does come to pass, we think that will only reach the bottom of the channel unless something serious happens.