A Bearish Open with Bearish Implicaitons

We're getting a very bearish open today. S&P futures rallied to 1206 overnight then dropped 13 points and are set to open at 1193. SPY is set to gap down and open right at support at 119.8. If SPY can't hold the 119.8 support level then look for SPY to make a low below Friday's low. If this occurs then SPY is headed for 118.2.

There is no news being released today that could cause a big reversal. So I'm expecting a relatively straightforward trading session today. I would love for SPY to rally initially and close the gap at 120.28 but fail to break through the 120.4 resistance level. This would be the ultimate place to short.

Alternatively SPY could drop from the open but hold a low higher than Friday's low (119.26) and simply rally for the rest of the day.

Finally there is the possibility SPY makes like a rock and drops straight through 119.1, in that situation I would sit on hands until SPY bases and bottoms out (probably close to 118) to go long.