S&P just could not hold onto gains, and I think this will be the story throughout the rest of the summer. We have tried to maintain strength and failed and this leaves us looking weaker, more especially as the stochastics on the daily charts are beginning to converge to show a move lower..

Use today 1403/04 as a upside target and look to get short. If we struggle at 1401 sell here, and add to shorts on further bounce..

Below 1395 and we should then be ready to trade quite a bit lower..1380 remains short term objective...but there is this air of weakness about the markets and they do look ready for quite a large selloff over the coming weeks with 1355 looking to entice.