Dartline™ First Look – morning directional planner

Standard & Poor’s 500 index futures at 1090.70 suggests further weakness and a test at 1081.10 to determine extent of the current decline. Inded, traders are closely eyeing the 1,100 level for the S&P 500. Earlier this week, it managed to close above 1,100 for the first time in over a year but its failure to sustain the level is stoking market talk that the rally since March has dried up ahead of the year end. A sustained move above that number would be required to confirm that this is not just a bear market rally. Since fundamentals are still lacking and the economic data appears misplaced and manipulated, it would be prudent to step back, reduce laggards, take profits and trade both sides with very short fuse.