I would like to reiterate my view that this upside symmetrical triangle breakout in SPX is yet another head fake. With so many this year, why should this be any different? I am not sure on the timing, perhaps tomorrow, or on Thursday, but I think that reversal - possibly due to ES failure to take out WR1 - is coming. No reason to fight this though, as this thing can just rip higher like nuts. Just waiting for my pullback to 50 dsma.
This said, I still think that market is in bullish mode into the end of 2011, just needs to come back for more big longs to join. My intention is to reload with them at lower levels: at 50 dsma and just below that on the stop scoop. Lets see what happens...
Update on Nov 9 @ 11:50 am
So head fake it was. Price sliced through triangle apex, and is backtesting from below as I type. It will take some time to sink the decline in, but it is bound to continue should the close below SPX 1250 occur. Next level of support is 1230, followed by 1215. Helmets on!
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