As always mother market never does what she is expected to. We heard everything last night. Market going to roll over from bearish divergences. POMO is over so there is no catalyst. We are topping out with signs of distribution. No sector leadership. But in the end price action is the only that pays. After sucha big run up in September having 5-6 days of consolidation is healthy. That is what we had. In the end none of the indicators mattered. The ROBOTS and the buy programs are still in full force here. Today much like many days of the past month we gapped up in the morning and moved steadily higher all day taking out every piece of resistance and doing it easily. Now that we have closed above the dreaded SPX 1150 line. That huge level of resistance that goes back from January it now becomes support. All stops will be raised now under that mark. The next stop is SPX 1175 but with the nasty move today all indications are that we can break over that next level of resistance with some backing and filling next couple days. Bad unemployment, gdp, whatever it maybe. We could see a report on delays of QE2 due to a weekend rendevous and salacious pictures in the WSJ between Bernanke, OBama, and Angela Merkel skinny dipping after a g20 summit. Putin himself could become betrothed to the daughter of Mao Zedong and still it wont matter much. Until SPX 1150 is taken out the argument favors the good guys. Now word to the wise….this all could be for nothing…we could take it out tomorrow morning. We are still in a tight enough space where one train wreck day can send us near the 200dma. But the good thing is we got tons of different layers of support to hold us up if that is the case. But till that happens why fight the tape..Ive been buying all pullbacks for over a month and it feels good so ill keep doing it till it dont work no more. I fully expect when this market turns to lose 4-5% of my account but the goal is to eeek another 10-20 to give me a cushion.
top picks for tomorrow PMI, SFI, EXK