By FXEmpire.com
Friday saw the S&P 500 index gained slightly as the volumes and quite frankly the interest in the markets were very low. With very little economic news to push the markets around, participants were more than willing to take a rest.
We are pressing against the recent highs of 1425, and as a result we think that a breakout is imminent. Granted, we can pullback and that’s why we aren’t jumping into the market with both feet right now. However, if we get the daily close above 1425, we are more than willing to start buying the high beta names in the market as we should see acceleration to the upside at that point.
We see as fully no reason to short this market right now, unless of course the Federal Reserve explicitly disappoints the market with either no quantitative easing, or very little. We are at the top of the recent uptrend channel, so a pullback could be coming but we think this will simply offer more of a buying opportunity than any chance to short this market.
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Originally posted here
