Yesterday's bearish post ended with this comment (and I'm glad it did):
"What if I'm wrong? What if the S&P traces out a huge triangle at these levels? There is a spot up around 1343 that is made up of several opens and closes that coincides with a 61.8% measured move from what would likely be the widest part of the triangle. Just throwing it out there. For the time being though, my money is on red."
Futures are up strongly this morning. 1215.42 was not violated yesterday, and it looks like 1239.58 will be exceeded. This is great news for me and my inventory; I got a little aggressive with my hedges yesterday. Waking up to a down market heading for 1215 or lower would not have made me happy. I pretty much got the top tick on Tuesday with the SDS. I didn't want to see it go to waste by having to dump it to salvage an overly aggressive hedge.
I do think the S&P is now tracing out a large triangle to new highs above 1292.66. 1300 is as good a target as any. Nice round numbers get the public and the press giddy. Could 1343 happen? Of course it could. Anything can happen.
Above 1251.82 will close off any further bearish behavior (new lows) and suggest that dips should be bought. It looks like Santa will bring a rally for Christmas. But the bill will be due soon afterward.
Until then, enjoy the rock 'n' roll.
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