(Chart 1 - Snp 60 min chart zoomed)
(Chart 2 - Snp 60 min chart)
I will be publishing a "Day trader road map" every evening for a few products. This should give key S/R levels on a more micro basis, as well as highlight possible plans for the days trading.
Here we have a 60 min chart of the SnP mini future (Jun11 contract) (NOTE: For all those who don't know what that is, consider it a fine proxy for the SnP index itself, or the .SPY ETF.)
For today's trading, 1335-1340 should provide resistance. Personally, I would fade this zone on the sell side, and take some down to 1329 with an ultimate target of 1321.
Combine that with that MACD divergence we have over the last 25-30 sixty minute bars, and I think strength can be sold with good confidence.
Should we get above 1340, the buy case most likely is in effect, but we will cross that bridge when we get there.
(Edit: Daily Canary has good unique overbought/oversold indicator posts about the Dow. Use them to further make up your mind)