Where Is This Market Taking Us
For most of this month the bears have thrown around the bulls like some red-headed, left-handed, step-child. At this point, we are in a steep decending channel, and as it stands right now, we are on the bottom end of that channel, which means for the bears the risk far out weighs the reward, unless they are able to somehow break through the bottom end of that channel, at which point, the bottom falls out of the market.
At this point, I haven't shorted the market at all, instead I still trade to the upside, taking the opportunities where I can find them and I believe in the short-term the bulls have the ball in their court to push the market back closer to the upper band. At which point, I'd probably sell the rally.
Here's the S&P Chart Analysis.