David Fuller's view I had to be away from the office for most of today but on hearing of some rally strength this morning, I covered my two SPX (spot weekly & daily) shorts for the September contract at 1536.88, against my short sales at 1534.38 on 5th April and 1573.38 on 12th April. Back in the office this evening I re-shorted half of my total previous position at 1540.13. These prices include all spread-bet dealing costs.

My view on the S&P 500 is that it is in an overall bull trend, but experiencing a short-term process of reaction and consolidation of gains, including some mean reversion towards the 200-day MA. Therefore I may increase my short on small rallies beneath this month's peak to date, and ideally cover these hedge shorts on near-term weakness. Currently, short-term stochastic indicators for the S&P are slightly oversold.