Where now for the S&P500?

Nobody knows, is the simple answer. As intraday traders we must aim to be reactionary, not anticipatory. All that we need is manifest in the chart. With this in mind, the daily chart below, suggests a patient approach in the short term, may prove to be the most profitable. We will look to action a long position at the lower end of the channel highlighted - 890/900 - depending on when it occurs. A contiuation of this endruing move to the upside is not out of the question, though the S&P500 remains overbought, notwithstanding recent declines. Conversely, should we see a pop up 948/950 we will consider a short position, theorizing the markets may continue to be obedient to long term descending resistance in play since 20th May 2008.

Happy and profitable trading all!