Monday, December 12, 2005

SPX - Tinderbox situation

Tommorow is the FOMC day again, which means what Greenie says or not says will cause a big move. The Daily and the Hourly continues to be on a sell on the SPX, more so on the DOW. The daily CCI(14) is still hovering below zero, but barely so.

It's a tinderbox situation. The hourly EMAs are flat on the SPX, which means it doesn't take much to create a hourly buy or sell here. Since the daily CCI is barely below zero, it doesn't take much to create a zero line reversal and a daily buy here. So keep your powder dry and follow the big money, after they push the buttons post Fed announcement. I am completely flat here.

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