Monday Morning

Gator's Chart of the Day: SP-500

Well it looks like Spain is saved (for the moment) and China had some strong trade numbers.  As I write this on Sunday night the futures are up about 16 points.  If that holds it will put the open right on the lateral resistance line (green arrow) and that is what I expect to see; resistance.  The upper Bollinger band and the 50 day simple moving average are just above that level so even if we clear the lateral line it looks like that's as high as we can expect the average to move in the near term.

There are likely to be a lot of shorts that need to cover so keep your eye on the opening rotation (first 20 to 30 minutes) and when the red candles start to show on the 2, 3, and 5 minute charts you may want to take some profits.  Watch for support to be established on the pullback and we should see a new trading range. 

We have a quadruple expiry week so expect lots of volatility and next weekend Greece will make another attempt at selecting a government.  I plan to be very heavy in cash by Friday evening.  Good luck.