I'm crazy & and bullish over the next 2 weeks
Look at the charts of the leaders like the Nasdaq, Nasdaq 100, the Transports, The Large, Mid and Small caps. They all say the same thing in that we are done with this swing high and it's time to establish the next swing low.
But when you look at charts, there are other things you have to consider that go beyond the movement of price, such as time & history. Tis the season to be Jolly, and December has the highest positive average over all other months.
Anyways, here is the S&P 500 Monthly Chart. I just wanted to point out the need for patience. Look how much time we've spent trading sidways in this yellow box.
On the Weekly Chart we are still dealing with the battle between the Oct 07 & Mar 09 trendlines. You also might want to notice the absence of volume above the 50% retracement level. Could this mean it could be a straight shot up to 1200? I doubt it, but I still thought it warranted observation.
On the Daily Chart we got rejected by the Mar 09 trendline today, but did manage to close above the R1 1105.19 Weekly Pivot point. Looking at the recent swing low-high Fibonacci levels, I'm growing a bit optimistic we can push higher because we haven't yet retraced the 38.2% level. But Bear in mind we are trading sideways with a slightly lower bias.
The Hourly Charts are what is telling me this latest swing high is different from the previous 2. Look at the Fibonacci Time Zones and how well they match up with the first 3 swing lows as outlined in the yellow circles. Traders aren't willing to let go of this market. I was watching the Futures during the Dubai scare and we were down as much as 30 freakin points! But look where we ended up closing once the markets opened. Not so bad if you ask me. So I'm hesitantly bullish for the next 2 weeks and we'll just have to see if I'm right or wrong...
Best of luck this month!!!
