SPX looking stretched

SPX Daily

I zoomed out a bit on this daily chart to include a little more price and volume data. The S&P500 bulls are bumping up into the top area of a high volume zone here around 1410ish. If they get to work in the S&P futures tonight and clear that area by tomorrow, then I'll be watching for a potential move up to the 1420ish level by the close. S&P futures are now trading at about a 3 point discount to SPX, so the equivalent levels I'm watching in futures are 1407 and 1417. 1417ish is also the weekly R2.

The flip side is that we roll over from here. There are plenty of indicators that are starting to look ripe for selling... you can take your pick. The first level of potential support that I'll be watching for on SPX is 1380-1385, and then comes the 1360-1370 high volume zone. If the bulls can't hold that 1360-1370 level, the 50day comes in around 1350. Below that and we potentially open up to a deeper correction into the 1320's and a break of 1300 (sure seems like a lot of folks are anticipating that though).

Overall, I'm thinking that we might need to see one last move up with a volume push on the S&P futures daily chart before we rollover a bit. Anything above 2m contracts will probably provide a decent swing short position setup for me. I'll follow up on that when and if things develop "properly".