SP 500 Futures Hourly Chart

The support and resistance seems obviously shaping into a rising wedge. In our experience these have a 55-45 probability of breaking to the downside and dropping down to the firmest base which here is about 1340.

However, they do have an annoying tendency to break to the upside, and then the formations on the daily chart tend to have more control over short term pricing action. If it clears resistance at 1380 we could see a short covering panic buy up to 1410.

This would not be inconsistent with this being an important quad witch expiration week.

In summary, the US economy is in a stagflationary recession, and the banks are working overtime with the Fed and Treasury to hide the rot in the crony capitalist financial system after multiple bubbles.

The real economy is about as imbalanced as any command economy can be, especially with the savings reserves of the better part of the world to play with.

In the short term the banks, lacking real world serious business potential, will continue to game the financial markets, so speculator beware.