Obviously at this point, the market is extended and in need of some consolidation. A big supply of traders is missing out and will act as potential dip buyers. We have also recapture the 200 ma and will likely draw in more money from the bulls. Many were looking for a 1300 SPY in the 4th qtr but few expected us to get so close within a day. I am not comfortable chasing a 200+ point rally so will wait and risk some upside.
