Yesterday's post spoke to the S&P 500 being overbought so we sold what was considered and extreme and was able to profit on the 1st pull back. This trade was a bit unusual in that it took a bit more attention to manage due to the volatility in the market. I entered using a bracket order which simultaneously enters a limit order for entry and a stop loss and profit target all in 1 shot. This allows you to go about your day and still put a trade on with protection in the event it goes against you. Now back to the todays chart. 

The S&P 500 is holding up well and has given back very little of its new found gains. Volume was 951K which is just above the 50 day moving average so this move has some real participation. 1324 is the next resistance level which may be tested on this swing; however, we must be very careful with long entry as the bottom can easily fall out and retest 1300. We will look to go long at the 1316 price level but look for a test of trendline before getting long. Also be more attentive than usual because things can happen alot faster than usual. May want to peek at the trade a couple times during the day just for some extra protection.