As we start mid December I am keeping my eye on two levels on the SPX. 850 and 900. If we close below 850 then more downside should be expected. And we if we close over 900 then I think we are headed higher into year end. My bias is to the upside here in the near term simply because of how bullish of a day Friday was. Futures were down to 828 overnight Thursday and we rallied all day Friday to close at the highs of day. The market could have suffered big time Friday after the bailout news but it didn't. That was a major victory for the bulls and price action that you gotta respect.In addition to the Fed meeting Tuesday at 2:15 pm et, we have some interesting economic data being released starting on Monday will give us NY Empire St Index, Industrial Production, and Capacity Utilization. Tuesday haas CPI, Housing Starts and Building Permits. Thursday gives us Jobless Claims, Leading Indicators, and Philly Fed.
Overall, I would be expecting the trend of bad news to be followed by positive reaction in the market to continue. You cannot fight the tape. With Fridays close pushing above the critical 20 day ema it should set off a good amount of technical buying this week so be ready. The 50 day ema is still just overhead at 935 so that could create some resistance to the upside.
No comments:
Post a Comment