Sell the futures.
The last 45 minutes of the end of the day action on Friday Aug 14th is highlighted by shaded areas. These are 15 minute charts. Point to keep in mind is that the futures are open till 16:15 hours EST while the stocks have regular trading hours till 16:00 hrs EST.
What does the recovery at the end of the day on a Friday mean?
Short covering or bulls getting back in and want to own positions over the weekend?
The former seems more probable. Bearish chatter has found its audience over the last week or so. People may be short going into the weekend and incoming data but their view was not fruitful; hence the short covering.
The other probability that new bullish positions were put on going into the weekend is less likely but certainly possible. But looking at the very recent strength in US Dollar and the largest bank failure of 2009 on the cards (
it actually did happen), putting in new bullish positions will be throwing caution to the winds.
My view is the recovery is short covering. The Breadth (Up Volume - Down Volume) did not improve (it was lower) while the E mini SPX futures went up.