It’s possible that these are the lines in the sand we’re looking at to decide if this is Santa’s rally or if we turn lower. If we do turn lower at resistance then it would make that top channel very significant with 3 points of contact.
On a side-note regarding my market timing system, we came very close to turning bullish again and if we close anywhere in the green tomorrow it should issue another buy signal. However, to repeat an earlier point it seems that every time the signals turn bullish it’s rejected after 1 or 2 days of gains and turn lower. I also seem to doubt every buy signal, enter no long positions, wait for a few days and then get sucked in right when we’re about to turn lower. If we get a buy signal tomorrow I’m going to buy a few call options at the close depending on how strong the markets are.
I just checked the futures and we’re down a hundred and change, so it’s going to take some real strength to finish on the plus side, reinforcing a bullish stance if it can overcome a weak opening.