Mini Dow Jones was unable to hold above 2011 highs of 12873 indicating a top has been made and the rally is over. A close below 12776 would help to confirm this.

Stop losses on our short positions are needed above 12984 as if we make it through here the market will have broken higher and will be clear to try for a test of resistance at  13133/40.

However we are looking for the market to head lower now. Today we expect a move to 12740 and if we break below here look for a test of support at 12645 and then 12600. This may hold the downside so it should be worth covering shorts here but be ready to re-sell a break below 12570 which should quite possibly lead to a test of very good support at 12494/74. Attempt longs here with a stop loss and then sell short again below 12400 as this keeps the pressure to the downside for a very good buying opportunity at 12288/77.

S&P took a last gasp higher and reached 1352 before sellers were once more back in the market. We have seen overnight weakness to 1341 and we are looking at a break of 1340 today. We should then be able to push lower to the 1333/29 support. Here we are looking to cover shorts.

We would expect buyers to come in around these levels as we would have fallen quite a lot for the intra day trader…

However...with the Dow double topping yesterday...and this market failing to break 1352 and technical indicators turned bearish we have to now play this from the short side...and sell into any visible strength. We would look for the market to fail again at 1348...and therefore we place stops above 1352.

Now if we cannot pullback and lose 1329 we look for 1318/1317 as a quick target for the sellers. Med term we see S&P quite a bit lower and 1292 to 1273 look set to entice over the next few weeks. 

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