S&P500 E-mini Futures: Patiently Waiting for an Entry

We are waiting for a selling opportunity in the June E-mini S&P 500 contract. The S&P has been trending down in a channel since its high on 5-2-2011. With this downward momentum we feel it is a good time to start looking for short positions. On 5-23-2011 the S&P traded down to the bottom of the channel but we feel this would be too aggressive of a sell and without a bullish candlestick pattern we would not feel comfortable recommending a long position. We are waiting for the S&P to bounce back to the upper trend channel line and that is when we will look for a selling opportunity. We will also wait for a bearish candlestick pattern at the upper trend channel line to help confirm recommending a short position.

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