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The S&P 500 Index fell precipitously during the session on Wednesday as we close of the very lows of the range. The market closed right on top of support in the form of the 1420 level, and as such we do feel that the next day or two could be very important for the next move.
If we managed to break below 1420, we feel that the 1400 level will certainly be tested. Below there, we think this market could really accelerate to the downside. As for buying the S&P 500, we would do it through ETFs if we got some type of supportive candle. The reason for this of course is the fact that they aren't leveraged, and this can save you a lot of pain if the down move continues. At this moment in time however we are very flat.