Given the lack of divergence between the oscillators and price in the S&P 500 I think the 1290ish level from May 18th will likely be taken out before we can go higher.  Downside targets are 1276, 1250ish, 1210ish.

On the 60 minute chart note that on Tuesday the index retraced 61.8% of the swing from 1365 to 1291.  We have since formed a very visible bear flag that has a first target at 1376.

The 200 day simple moving average is currently at 1284 and may act as some support, although it doesn’t take much imagination to envision stops being set right near the 200 sma.

One trade at a time but for now 1276 is on my mind.  A trade above 1319 would ask for reconsideration of said target.

 

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