Signals

Short term signal: DOWN - it will turn up above 1686
Intermediate term signal: DOWN - it will turn up above 1692
Comment: More choppy action, more confusion... but today does not look good for the bulls - close bellow MA50(1680). If you ask me the bulls will be scared a little bit more(one more leg lower) and than... thank god we are saved the debt ceiling problem is resolved everything is rosy again(intermediate term bottom).
A lot of possible scenarios for the short term. I wanted to show a chart, but too many options.... The market is definitely news driven and the short term pattern can take different shapes

Watch price behavior for clues:
- another leg lower - not more than a bounce lower than 1710 and sell off breaking bellow 1670.
- a rally higher should start soon - the support area 1670-1680 holds and move higher above 1710.

Levels to watch SP500:
- 1710 - resistance
- 1670-1680 - support level
- 1627 - support level
- 1598 - is major support.