The last few days, piling on shorts on any S&P significant pop has worked out pretty well. But looking at the 4 hour chart it looks like strong divergence is forming and I would be weary of selling in this area. We have another 15 points til we get to the first retracement and major resistance at the 1288-1290 area. At the moment I don't plan on touching this and let it work itself out.
To the left is a 4 hour chart of the EUR/USD and while the pair sold off a good amount overnight, it pulled back strong this morning. It seems we are still within the most recent retracement limits shown in purple and still holding the first level (38.2% @1.4312) of the major retracement in yellow. We also see the MACD pulling back considerably on this up move so far without making a new high. This again looks like a good opportunity to get short the pair.