Stuck in a 60pt range since Early February
Signs of strong selling pressure around SPY 212 / SPX 2120
Resilience in 100-day MA as key support.
Tightening signal the possibility of a big move in either direction to come soon.
Mixed signals on and other momentum indicators.
The Index has gone unscathed through geopolitical distress in Europe, a slowdown in China, the blackout in corporate buybacks, and recently, a deep selloff in US Treasury bonds, thus showing the crucial importance of the Bernanke/Yellen Put in explaining stock prices.
Playing the ranges has worked wonders so far; but a shift towards a directional bet is in order (having in mind SPX above 2125+ and under 2075- closing levels as key prices to watch).
PS: The theme of worsening macro data and technical divergence that has been extensively documented by several market analysts is still on; however, it has to be confirmed whether these factors can generate a change in direction for the US equity market.
Best of luck trading and don't get caught in the chop.