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The S&P 500 index had a positive session, bouncing off of the 1420 level again. Over the last four sessions, you can see that we have bounced around between 1420 and 1440, and as such we expect some type of move to suddenly appear. However, we do not know which direction we are going quite yet. In paragraph granted, the trend is higher and we suspect that's probably the easiest path, but the reality is that we are starting to drift sideways which is quite often a precursor to a trend reversal.
If we can get below the 1420 level, we think 1400 will be tested in short order. If that level gives way, we would be very short of this market via the futures contract. In the meantime we feel this is a market we should be on the sidelines with, and as such are currently flat.