Tuesday, December 06, 2005

SPX Daily - 12/6/05

The message boards on the web are humming with the talk of DOW 12000, 14000 etc. There's this elusive last leg up left and it's year ending with 5. There are well intentioned advise from bulls, as to why it's not worth being short here even for a very short term trade. This kind of sentiment is what intermediate tops are made of. While a last furious leg of rally cannot be ruled out, we have to work with what the hourly and daily momentum are saying at this point.

The daily is close to a sell, but not confirmed. The hourly was on a sell on all the indices - NDX, DOW and SPX at yesterday's close. With the gap-up work, they have managed to move the SPX hourly to a buy, but the DOW still remains on a sell. Still short from 1267 on the Dec ES. If we take out 1268.25 on the Dec ES, i will stand aside. If we take out 1268.25, then we could see a double top at 1273 or slightly higher highs.

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