S&P 500 - Wave E of the Expanding Diagonal is almost done

S&P 500 is faceing strong resistance near the 1,200 area. On Friday the S&P 500 closed above the upper Bollinger band and yesterday the VIX Index closed below it's lower Bollinger band, which in both cases is bearish.

Looking at the hourly chart below we can see, that the E-leg in the Expanding Diagonal could finish at any time now calling for a violent decline in prices. Yes we might need a little more upside action, but it's not worth fighting to squeeze out the last one or two percent, risking five or ten percent. If you want to stay with the trend (which is up for now) then use a stop at 1,175 protecting you from getting caught when the stocks turn lower.