This evening a fellow trader over at Stockpickr.com pointed out a possible falling wedge on SPX best seen on a 30 or 60min chart. If broken to the upside with increased volume, this could potentially propel us enough to test our highs. If one were to have a Bullish bias, you would enter as near to bottom support as possible with your stop beneath it for a low capital risk entry and possibly trail a stop.
Over the longer term, however, I’m not too concerned on these intraday setups however as the chart to the right demonstrates, negative [down] volume continues to rise while positve volume has been dropping. The distinct Bearishness of this is undeniable and dictates shorting any pop. Therefore there’s nothing yet to change my mind; I shall continue to short at overhead resistance. [HT Ryan]