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The S&P 500 index did very little during the session on Wednesday but did manage to finish slightly positive. We are currently testing the 1420 level again, which of course was serious resistance a few days ago. If we can manage to close above 1430 or so, we could consider this market broken out and begin to buy S&P 500 futures, or even higher beta stocks such as financials as we think this would signify a much larger run to the top.
On the downside, we see the 1400 level as serious support, as well as the 1380. It is under 1380 that we think the market search the ship to the downside, and if we can get below 1360 things will get ugly in short order. In the meantime, we think the next couple of days will be very quiet before the speech by Ben Bernanke on Friday.