S&P failed to break our resistance at 1070 although we did not fall back very much.
So the 1070 / 1075 region will be key again today. There is now a short term double top in place and with the overbought indicators there should be a pullback from these highs. Only if we make a sustained break above 1077 will sellers reverse their shorts to join buyers for a leg up with 1104.40 as the next targeted area.
Yesterday's range was fairly narrow but support at 1053 to 1049 could be tested today and sellers should cover to here and join buyers once more so a bounce is possible. However they will not hold if below 1049 breaks as 1043 to 1038 would then be the short term objective.
Dow failed at resistance of 9797 creating a rare triple top. Conditions are now in place for a short term move lower.
First major support to watch for today is 9649 where buyers could appear to produce a bounce but they will not hold if 9640 breaks, so be careful of this. If it does break then 9609 will be the first port of call.
Below here sees a deeper move lower with 9573/65 then targeted. Only a sustained break above 9797 resistance can lead us higher to target 9857/59, which are the highs of the continuation charts just left by the outgoing Sept contract. Here the contract will come under pressure and it is only a clear sweep above 9875 on a close basis that would negate further weakness.
