Market up nicely again, follow up to my market post from Thursday

Last week on Thursday the market was down strongly and folks were getting bearish, however as you may recall I posted two S&P 500 charts, which showed how important the 1540 support area was for the S&P.  Since that time the S&P 500 has rebounded 38 points off that level!  Therefore I hope some of you bears covered your shorts there and took profits because at the very least you can now start to scale back into your shorts at a much higher levels, 38 SPX points is tough to shit through!  This is why I pointed out that 1540 support area last Thursday.

The first chart shows the P&F chart which I showed on Thursday, clearly that 1540 was big support, now however keep an eye on the 1580 area.  The second chart shows a daily candlestick chart, could today's move still be part of a RS to form a H&S pattern?  Perhaps, however as of yet we have yet to see any reversals, but you could look to scale into some lower risk shorts (38 points higher up here) with a tight stop, or you can wait for a reversal trigger, your choice, however shorting up here is MUCH more objective than last week's oversold condition.

Otherwise we'll see what the market does here, it could also form a triangle and attempt to form one more high to trick both the 'bulls' and the 'bears' who are not expecting that, or form a flat, or top out in here in the upper 1570's, again let's see how it plays out

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