A few weeks ago I set out a very broad outlook, and it remains on track. With primary target sp'1345 hit, we're now set for a very strong wave'2 bounce, levelling out somewhere around 1400/25, this will take until next week to level out.
sp'daily4 - original outlook (from late October)
More than anything, lets be clear, the size/power of this opening bounce is too much for the bears to be re-shorting into. I would be very surprised if we saw a reversal lower now, and I sure won't risk that.
I will sit this ENTIRE week out. No shorts...no longs.
Bears face a very strong wave higher into the 1400/25 range across the next 4-6 trading days.
So..last Fridays wave 4 & 5 outlook on the hourly chart gets thrown out, and I'm reverting back to the original outlook.
I will simply wait to re-short next week in the low 1400s.
back at 11am
Update..take a look at the sp'weekly rainbow chart...
Look at the stupid (wave'2) bounce we got in June 2011
We soared 70pts in a single week, then some churn..and then a wave'3 lower - on the debt ceiling/ratings concerns.
Thats a fair example of what I'm seeking in early December.
So...I'm sitting it out..and merely letting the bull maniacs ramp it...hard.