Signals

Short term signal: DOWN - it will turn up above 1702
Intermediate term signal: DOWN - it will turn up above 1702
Comment: The move down looks too choppy to be impulse but for now every bounce has been sold and we have 5 red days in a row... It looks like some kind of a wedge which is trying to find a bottom. If the bearish scenario is in play we should see a plunge bellow the lower line of the wedge but probably not lasting too long.

P.S. The levels which I post are not written in stone. You should watch for a entry with low risk around this levels - these are MA50 on the hourly and 15min chart, minor support/resistance levels, MA10 or MA20 on the daily where the price usually find support/resistance.
For example yesterday and today the index is flirting with the 1695-1700 level which if broken will turn the signals down. Than today you see the index trying to surge but fails at MA50 on the 15min and 1h chart(1701-1702) and that is very nice entry at 1700 with very low risk. If you see the index continue moving higher just close the position with several points loss.

Watch price behavior for clues:
- top is in and leg down has begun - sell off continues and we see technical damages - move bellow 1670.
- a rally higher underway - not more than a pullback to support 1675-1682 and another move higher.

Levels to watch SP500:
- 1710-1725 - resistance zone from different trend lines
- 1675-1682 - support
- 1627 support level
- 1598 is major support.