SnP Daily Chart Weekend Look Ahead 6/5

(Chart 1 - SNP Daily Zoom)
(Chart 2 SNP Daily)

We finally broke out of the 1308.5-1347.75 trading range, closing at 1296.25.

This is significant support as it is the conflunce of:

-Bottom of current bearish channel (orange)

- 38% retrace (shallow Fibonacci) of Nov 2010 lows to May 2 high

-62% retrace (deep fib) of March 2011 "Japan" low to May 2 high

However, 1308.5 is now the ultimate resistance. (keep in mind they can exceed it by a few points intra day, but a close of 1310+ gives me serious pause about this downtrend continuing.)

Readers know, I have been short the last few days.

I covered a good chunk of my position towards the end of Friday.

I see us getting back up to 1305-1310 soon.
I will be using such pops to add to current shorts and target 1290 and ultimately 1273