Time to take a look at our Daily S&P chart. Firstly we should note that we've been in a very choppy and range-bound market for the last couple of months for the S&P(unlike other risk assets), in which case we should be focused on identifying major support/resistance levels and using oscillating indicators for clues for levels to trade. So I wanted to point out looking at the volume profile on a daily chart, we see 3 majors levels we should be looking at, and they are all low volume nodes on the profile. They stand at 1380, 1335, and 1290. Now if you notice that between 1335 and 1380 is what I consider no-man's land. This is where I would consider the trend to be neutral and using indicators like RSI, Stochastics, CCI's would be useful for range bound trading. Now since most people, including myself, have concerns of downside risk, we are always looking for breaks of any Support levels and in this case I would be looking for a break below 1335 and if we do, I'm expecting a move down to the 1290 level immediately which is our next level of support.
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