While we have been bouncing between roughly S&P 1085 and 1115, many would be looking to short this last move, however with such a powerhouse week of news this sideways movement seems quite bullish. The list of stocks making new 52-wk highs each day continues to be extensive. If we break $1116.25 on the S&P I would be anticipating a spike (at least intraday) in the markets.
This has been a very difficult intraday trading environment and the holidays it even more difficult to judge price action due to the lacking volume. We are however, looking towards a bullish 2009 close. If we break $1085 to the downside and continue falling with large body candles on the daily’s we will shift our bias.