The SPY is currently trading at the previously posted R2 resistance level. Although I favor a reversal off the R2 level, a move towards the R3 zone, defined by the 7/30-31 gap, can not be ruled out at this time. The QQQ is close to backtesting the ascending broadening wedge pattern from below with another recently broken key uptrend line just above the bottom of the ABW pattern. Again, I continue to favor a reversal at or near any of these overhead resistance levels which are all in close proximity although some serious damage would be inflicted upon the bearish scenario should both the SPY & QQQ make a solid break above the top of the July 30-31st gap, which would most likely open the door to new high in both indices. It is also worth noting that the XLF (Financial Sector ETF) is still backtesting the recently broken primary uptrend line as I continue to believe that the financials will lead the broad market lower on the next major leg down. As such, this looks to be an objective area to add short exposure to the XLF short trade or the broad markets (SPY, QQQ, SDS, QID, etc..) with stops above that top of the July 31st gap (although the broad market ETFs are not official trade ideas at this time).