First, I want to see a cross of the 8 and 34 EMA's on the hourly.
Secondly, and since I'm looking for some kind of decent continuation to the downside, I'd like to see a break of that support at about 2011.52 in SPX500 . There do, however, appear to be some "noisy" support levels at 2010 even and slightly above 2007, so I need to be aware of potential bounces in those areas after a break of 2011.52 to see if there's sufficient buying interest there such that a short isn't advisable.
I will then look to trade in the direction of that trend on the 5 min., looking to enter on touches or candle penetrations of the 8 , assuming the EMA's have a "good look" (steep angle of descent/increasing separation between the EMA's). My initial stop will be set at the last swing high, with the goal to move the stop to break even as soon as practicable, allowing the trade enough breathing room. I will consider taking additional positions if price continues to move in my direction, and I'm playing with sufficient "house money" at that point to make that a sensible thing to do, after which I'll move the SL to break even for the net position (i.e., for the initial entry plus any additions).
Naturally, I don't want to sit here all night long and watch the close of each hourly candle to see where things are at, so I generally set an alert, in this case for a break of 211.50 or so ... . The obvious alternative is to set up an entry order to sell at, for example, 2010 with a set stop loss at 2022, but I prefer to keep my eyes on the trade at all times to move the SL down manually as opposed to using a trailing stop, which may bring the SL in too tight in the short term.