Traders should prepare for a reversal but hold off until the signal of a turn down is given

The S&P 500 Index giving up 0.8 point, closed at 1121.1. Stocks started the session on a sour note today, but it overcame initial weakness to stage a steady climb, but the advance failed to take the S&P 500 through 1128, which marks the top of the summer trading range. The major averages lacked direction after being rejected by the resistance line.

Internal indicators are now rolling to within a day or so of sell signals, and volume is still at very low levels. It is becoming doubtful that the bulls can keep the uptrend intact. Traders should prepare for a reversal but hold off until the signal of a turn down is given.

The risk reward ratio is flavor the bear at this moment. You should hold cash or at least lighten your long position. You might get a better entry price at a lower level later if you still want to long this market.