Tax deal done and markets are not liking it. I thought ORCL and RIMM earnings would possibly boost the futures. I thought wrong. I want to think this 4th has more to go. Based on time I think it needs to be stretched some to get the top of 5 out a little further. This does not necessarily mean down more, but it could. Still targeting 1283. You should know the topping measurements have us in the window already (it is a big window).
Opex, holiday Friday, schools out down here today (which means I may start slacking the pre-market some but not the trading hours), inportant earnings are completed (except for NKE) till Jan 10th, all add up to traders maybe slowing down some. EOY prints are still a priority. Maybe some more insider selling. POMO could be distracted to other areas needing support. Spain and the PIIGS are blowing up. After Xmas all bets are off. 2011 will be the year. they can not extend and pretend much longer. 2012 will be much worse.
SPX 60m - the fall felt large, but in the scheme of things we've retraced nothing. This run IMO is weak based on the fast that price is 3 points off the top but the indicators are lagging horribly. If we gat any pop to a higher high the divergences would be dramatic.
I'm thinking it will be quiet today. Minis have defined support diagonal I showed yesterday. 1250 is resistance diagonal and 41 is resistance. If the minis can get thru 1230 to the downside a significant move could happen. I'm thinking today will stink and trade in a narrow range.
GL today and have a great weekend.
