|SPX consolidating micro bull flag for potential move up|
A move up will have very little resistance until the 1250 level, at which point it will likely pullback. I will look to short a hit or break of this level. There will also be minor resistance at the pivot high at 1210 and the 50% fib at 1224.
My upside bias is unchanged since I suggested that a short term bottom for stocks was in after the bounce of August 8. I also think that any movement up will serve to consolidate a macro bear flag formed since the large drop in late July.
If the market fails to move up and closes below the low of 1100, the bear flag will trigger and I will change my outlook to bearish. This is a distinct possibility as the markets are still rattled by European and American debt issues. Now more than ever, it's important to trade all up moves very carefully.