The indices were up big and breadth was extremely strong but volume was the lightest in a month. We captured the 50day today and now approaching upper level resistance at 1195-1204, with 1220-1230 as the major resistance after that. Never underestimate fund managers who are looking for yearend bonuses and job security. In addition, the recent pull back probably priced in a lot of negative earnings expectations. Earnings season starts tomorrow with Alcoa after hours. That said, we have rallied 120 S&P points from the low in 5 days and hitting strong resistance while overbought. Even if you believe in the Turkey gods, we may have to consider a 10-20 point pull back as better buying opportunity, especially if rally about 7-10 points after open.
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