Signals

Short term signal: UP - it will turn down bellow 1640
Intermediate term signal: UP - it will turn down bellow 1640
Comment: The signals are technically still up but the move up looks like bearish flag and price should soon turn down again. Confirmation for a reversal will be a move bellow the last low ~1640.
My plan - if the indexes open lower than the close on Friday short it with stop several points above the close from Friday. If the next leg lower has begun it should move lower and not look back. If there is one more push higher left we will wait patiently for another short entry around 1670-1675.
If I am wrong and this is an intermediate term bottom, it will be the most odd one I have ever seen:)

Watch price behavior for clues:
- short term bottom - SP500 should find support between 1625-1630(check) and move above 1655-1660(check), but the move should be corrective(check) and stay bellow 1682
- a rally higher to begin - 2-3 strong days up reaching at least resistance ~1682 - just the opposite is happening 7 days to retrace one day sell off

Levels to watch SP500:
- 1682 - resistance
- 1645-1655 important area, congestion zone, now it is a resistance.
- 1627 support level
- 1598 is major support.