S&P 500 - June 1, 2010 - Intraday

S&P is acting heavy and badly in need of a push from the bulls.

1090 area is the battle zone.

NDX had a good start and that may be positive, but S&P has to drag itself above 1090 and stay there.

I am going to relegate the Inv. H&S we talked about in probability. Although, it is technically viable, S&P is acting a bit too heavy for a good Inv. H&S.

As for larger daily frame, 1070 area is still support while index is having a hard time to move above 233 EMA.

Intraday breadth has been poor so far.

Index needs buyers to generate momentum and breadth expansion above 1090.

One last note: We are oversold, but that on its own means nothing. Oversold does not move markets, money does. So, let's watch to see if some bids hit the tape or not.

I have a small long with built-in profit as I have mentioned. The position has a short call and long put to secure it. If index gets positive, I may lift the short call.