Thursday, December 22, 2011

S&P at Key Resistance - Big Breakout or More Chop???

Tomorrow should be interesting as the S&P is bumping right into key resistance levels.  A move above the trendline shown below would also likely be enough to take the 200 day MA back and trigger a lot of short covering.   Maybe we'll see a decent move into the end of the year.   Of course, maybe we'll see a breakout reversal that would frustrate everyone, as that is what this market is best at - remember that.   We're not real oversold here but another day or two up would get us there so remain careful - you don't have any other option in this market.
S&P 500

Some names I am watching long are below.   Right now I am in two longs and took profits on my BZ position from a few days ago.  

I did see some interesting potential short setups in my scans tonight and have those ready to go if the market fails here.   Check those out below.  


Bottom-line here is keep your options open.  I am leaning long but won't hesistate to get to cash or go short tomorrow if the S&P shows it can't get over that key resistance level it is at now.   Hopefully we can get a breakout and a nice little year-end rally but the way this year has been, I somehow have my doubts.   Good luck Friday.

1 comment:

Anonymous said...

Merry Christmas Mac. Agreed, while I'm looking long, TVIX is good to have in the hip pocket in case of weakness - RSI2 = 0, RSI4 < 5.
- Clemer