Sunday, December 07, 2008


Believe it or not, even after all the recent volatility, we've been in the same trading range for the last two weeks. Over 90 and it we could easily go to 100 resistance. Major support at 82 meaning we break that zone and we will most likely revisit the lows. Right now the bulls have the momentum and they need to make their move. Our fantasy scenario? A few days consolidation under SPY 90 and then a significant break-out into the holidays. So far the banks have led (good) and the oils have been dragging behind (bad). Bulls need the oil stocks to firm up for this rally to survive.