Tuesday evening

SPX Daily

The bears pushed into the 1400-1410 zone today on SPX. S&P futures traded the second highest volume day of the December contract... and I'm starting to get very curious what the COT report will show on commercial positions when it comes out this Friday. The report  will include today's and last Friday's action, which were both big volume days. Today was also the highest daily volume traded so far in the Naz & Dow futures.

With the Rydex Bull & Bear Flow indicators getting closer to looking ripe for buying, we might have a recipe for this 1400 SPX area to hold for a decent rally. Daily chart indicators on S&P futures could use a flat to down day tomorrow in order to be in a ripe for buying setup. Short term Sentimentrader indicators are mixed, and are actually getting closer to looking ripe for selling again. Since we gapped lower this morning, the rally attempts (mostly in the Naz) "used up" some more of the ripe for buying setup from last Friday.

I'm not putting on any overnight or swing shorts until this 1400-1410 SPX action plays out a bit. Naz futures have held the Sunday night lows of 2657ish so far, and that's another reason I'm not very bearish here. I don't have any swing longs on either though, it seems like there's plenty of risk on those too.