The SP500 U'09 contract is challenging its initial resistance target area at 1018-1014.50. Expectations are for a reaction off this zone. Either a rejection down to the 973 Inflection Pivot or an acceleration up to the 1049.75 and 1078 targets.
To reduce the potential for any profit give back on a net long equity position a short futures, bear option strategy or long ETF [FAZ, SDS] position can be executed with risk parameters implemented above 1018 in the Sep'09 SP500 futures.
Expectations are for the MKT to make a decision by Monday afternoon.
JS
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