S&P Futures Update for Aug 9, 2012

No change in Weekly or Monthly Up Trend. The S&P's gapped open lower today but did not give up much ground - closing higher than y'day's Settlement price. Traders were caught short off the Open as overnight inventory was a 100% short. The profile above shows a "P" formation - signifying short covering; while the bulls spent most of the day trying to re-take the 1400 level but were unsuccessful. Value was overlapping but lower. For tomorrow - a failure to take out the 1400 level with conviction is negative and may signify that we have reached the 8 month Balance High. On the downside the 1387 may offer minor support while 1384 is major support.  I would treat y'day and today as a 2-day balance and apply the Balance trading rules.