Interesting Day on the Western Front

Today was a frustrating one from a trading standpoint. The first dive lower in stocks around 10am fell beyond fair value on the futures end tripping up my stop on a long running position in the S&P. I reentered the position as we had a reversal of sorts momentum wise only to see the same dive lower in the afternoon. Both times the market basically held the 1090 in cash which was important for this trend higher to continue. The move lower at 10am also showed how many traders are looking to either short this market or cover long positions...much more than those looking to go long! In any event, we are now sitting in a precarious situation in the S&P from a short term standpoint because the 1100 level has become a "level of lore." How is that you might ask? Well the overnight high in the ES' was 1099. The market never traded near there during the day and the cash market topped out a shade under the 1100 level. Bottomline, the shorts are entering at 1100 betting that this move higher is about to top out. Given the action today in Intel, "the most hated stock in America" according to Jim Cramer, the shorts could be onto something. But I am not joining their side yet...reason being is simple. The QQQQ's held in all day. That tells me there is more room to run...in the face of the bears and the shorts.