We were given some good information by the market yesterday. Initially there was a sell off following the CPI data in stocks & bonds, though bonds rallied hard off their lows. The FOMC minutes show a divided committee still - here's Jon Hilsenrath's take on it. Value shifted lower and the strong selling tail shows we maybe about to test the lower end of this 6 month range again.
Aside from the 'when will they raise' questions, global growth and currency devaluation concerns are starting to weigh heavily it would appear, and there are a few red flags on the longer term technical picture. However, the market remains within this roughly 100 point range still, so it's still too early to call in my view. Short term though, the market is in risk off mode.
Overnight has continued down from a high of 2077.75 to the current low at 2053.50 (see 08/12 naked VPOC in chart above) on above average volume. Settlement was at 2072.75 so will be looking to see if the short inventory gets closed or if we just continue lower. Either way, I'm looking to play from the short side on rallies at the zones potentially.