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Technician wrote:
Looks we should just take a one or two day hiatus here and then move on from here
I agree with your outlook.... Closed out some long positions Friday.... I'm not willing to short the market here, but we could head to the low 1250's.....If 1245 fails the bulls will have trouble with new highs, but still doable.... I have been selling into all rallies above 1260.... 1280's will be tough until after the 15th.... Closed out most long postions until the market decides....
Lots of computer software signaled sell today.... We could easily see 2 more days of sideway and down action..... Maybe a rally by the end of the week...
Comments from a Tech Sunday:
I'm confident that we'll close the year pretty well, which suggests to me that we need a pullback of some sort first.
Since options expiration is coming, the best time to look for a pullback will be this week, which will allow the options guys to get positioned for the following week. This scenario would also probably complete an a-b-c correction on the S&P. I guess is that it will happen pretty quickly, too. My call is going to be for a flattish start to the week and then a decline into Wednesday and then a sharp reversal. My opinion will change, however, if I don't see pessimism rise quickly on any decline. I'll probably look to buy any pullback, especially if it comes early in the week. Remember, it's still likely that we'll see significant strength before this trend is over.
“There is only one side to the stock market; and it is not the bull side or the bear side, but the right side” Jesse L. Livermore
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