In the meantime, the SP500 came back down to retest the 1295 after it has failed to get back above 1330. In the last trading session, the SP500 open below 1295 then bounced back above it and closed at 1304.28. The recent price actions from the SP500 appear to be forming a descending triangle with 1295 as its base. If it breaks this base, the measured move could potential place the SP500 down near the 1240 level.
Next week is another OpEx week, and with the disastrous earthquake in Japan and the unsettled unrest in Libya, volatility will most likely increase. From scanning the chart for my list of stocks, lot of them are teetering on holding their support level and can easily flip over if the market breaks support. I am beginning to start looking at potential shorts while I am on the sideline.
Here is an updated SP500 price chart, click on it to view the commentary and various key levels.
