By FXEmpire.com
The S&P 500 index has been in a perfect channel for a couple of months now, and the Monday session solid respect that formation yet again. The S&P is currently banging up against the 1410 level, which extends all the way to 1425 as resistance. For us, the most important thing is that we are at the top of the up trending channel. In other words, we do expect the top line of the channel to hold as resistance, and expect a pullback in the near term.
1380 is without a doubt the first serious support level below, and under that is the 1360 level. As for breakout to the upside, if we can get above the 1425 level, we would be comfortable buying S&P futures or even individual high beta stocks. In the meantime, we expect kind of a listless drift with a slightly downward bias over the next couple of sessions.
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Originally posted here
