The Fed pumps the stock market yesterday with the SPX printing a new all-time closing high at 1810.65. The all-time intraday high at 1813.55 from 11/29/13 remains in place. The indicators remain negatively diverged wanting another spank down like the prior two, however, the big up move does create momo as shown by the RSI and stochastics over the last 3 days. This hints at another high, but overall, price is expected to top and roll over. Marrying this with the weekly chart, price may dance around in this 1800-1830 zone to finish the month since Christmas is less than a week away and the lighter volume Santa Claus rally is anticipated by many to end the year. A couple-day jog move may resolve any near term momo. The upper standard deviation band at 1818-1819 has to remain in play, especially if markets receive a BOJ Banzai pop tomorrow morning.
The 80/20 rule says 8's lead to 2's so 1818 would lead to 1822. Projection is for the broader market to roll over to the downside moving forward any time in the days or week or two ahead. The 1800-1830 area remains in play until the top is identified and the path lower develops. December began at 1805.81 so watch this number closely. There are 7 trading days remaining in the month and 1806 determines if the month is a winner, or not. The 20-day MA is 1796.14 so price will need to back test this support moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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