Be Careful Here

The S&P is just about back at formidable resistance (1325). This area will likely act like a magnet as bulls seek to drive prices higher, keeping bears off balanced. The QQQQ temporarily regained its 200-day average, but with the semiconductors still struggling, it is unlikely that this index will be able to surmount much more of a gain from here. This is especially true with the bond markets struggling. Right now it is best to sit on your hands if you have the urge to go long. The prospects for any meaningful price gains from here are poor. Shorts should start nibbling on positions as the S&P closes in on 1320-1325.