Here's an update to SPY roadmap for next few weeks. We hit a critical pivot this morning with highs of 144.55. This coincides with decline PURPLE trends line which have mentioned in my previous posts. We saw a perfect reversal from the level into the close today, closing the day almost flat on SPY. We are oversold on the McClellan oscillator, so a minor reversal is to be expected. The question is where do we go next - I have highlighted couple scenarios on the chart 1) We pullback to 143.09 level or maybe even 141-142 level and the bounce back to close the year at new highs. 2) We start to rollover from here. I'm biased towards the first scenario given that we are in December, and also FOMC statement today was good news for the market. The second scenario is not unlikely either if we start getting more uncertain about the Fiscal Cliff scenario.
"TRADE WHAT YOU SEE, NOT WHAT YOU THINK"