Monday, May 14, 2012

S&P 500 ~ Pre-Market Warm-Up ~ 14 May 2012

On Friday the SPX hit the resistance at 1363-65 once again and then sold off:

Overnight the futures sold off and are now below last week's low:

As you can see, the ES has been trading in a 20 handle range for about a week. This morning we're a few handles below this range but right at the strong support area at SPX 1340ish (1336-42) (~ = ES 1337).

So if SPX 1340ish holds I think we could get back inside the range by the end of the day/tomorrow. If we break 1340 though then we should decline further (to 1320ish or so).