Tuesday, January 25, 2011

S&P 1300 coming this week?

The market continued to bounce today at the 1280 range and it closed again above the trend average (which it now stands at 1287) and this to me points to a high probability of yet another high. Also, the MACD reversed its bearish cross towards the end of the session today and that's usually a sign there will be a bullish run the next day.It seems to me like 1300 is an obvious target and we'll most likely get there on some sort of break out. So I closed my short positions today at break even and will re-enter at a better (or safer) price point. The rally (from 1041) will come to an end sooner rather than later but there is no point in shorting as long as the trend continues to be this bullish.

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