Tuesday, November 29, 2011

S&P 500 ~ EOD Update ~ 29 November 2011

The bounce from the sub 1160 area continued today. We hit 1204 early in the morning and then pulled back a bit and tested yesterday's high around the 1195-97 area:

As mentioned yesterday I think the rally should stop between ~1195 and 1210. So, if you went long around 1160 you might want to cover a part of your position.

The move from 1160 looks quite strong though so I wouldn't just blindly short around these levels. There is a pretty nice inverse H&S with a target of about 1235-40 so as long as the neckline at 1195ish holds we could go (much) higher.

Trade what you see, not what you think. ; )