Spy was up 1.19% and bounced off critical support. At 8;30am we get the
PPI data which will be a big market mover. I’m not making any assumptions
about which way we go, although If we go much higher we will be entering
the net leg up which would a new bull market. The bulls did get a bounce off
critical support of SPY $393, if the bears can break through $393 to the downside
then it is very likely that we are going down to fill the gap at $381.25 the bulls need
to get over $400 and then push back over the negatively 200 Day Moving average at
$401.04 to get the next leg up. Volume has been drying up and the bollinger bands are
getting pretty squeezed so we should see which way the market is going. This is still a
bear market while we are trading below the bear market trend line. Be patient, we are
very close to finding out exactly which way the market is headed in December.
QQQ was up 1.18% and the QQQ Bouncing off that critical do or die support at
$280, because below that, it is going to look like a confirmed double top rejection from
$293 which easily sends us down to fill the gap and price the price target at $268.
The Bulls need to break above resistance at at $288 and $293 above $293 the bulls
could take us to close the gap at $308 but this is still a bear market as long as we
are below $293 with the risk of the double top rejection.
G. Allan Collins