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The S&P 500 index had a very quiet session on Wednesday as there were simply no heavy news related issues out there to push the markets around. Much like the Dow Jones 30, we find ourselves at the top of an up trending channel, and it looks like the 1400 level will offer some type or resistance to this market.
If you look back to the beginning of May, you can see a shooting star at 1400 that looks like a significant resistance point. We think that we will trend lower, but within the channel and not some type of major pullback. We suspect that the support will come back into play right around the 1375 area or so, or even earlier depending on what kind of news comes out. As for shorting the market, we are necessarily looking to do this unless we see a break down below the bottom of the channel.