Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

S&P Pennant Resolving or Bouncing?

|Includes: SPDR S&P 500 Trust ETF (SPY)

The S&P has pushed to the bottom of a pennant pattern that has formed over the last month or two.

One could play this for a short term bounce here, or wait for a convincing break to the downside before laying in some shorts.  In the larger context, a break to the downside here would seem to suggest that there is indeed very firm resistance at the 200 day, and the pattern replica from 2006-2008 continues.