Since Tuesday, we’ve climbed higher on declining volume and positive holiday trading. While some have the Santa visit pegged from next week to beginning of 2012, we already had a decent rally from the bottom and are no longer oversold. The question now is whether the bulls will keep pushing next week. We have some obvious overhead resistance at the 200-day simple moving average. The SPY had formed a sideways triangle on the daily chart as with the gold chart a couple of weeks back. We are only a few points away from a meaningful breakout to the upside that could lead to 1300 but at the same time pushing overbought levels. It will be interesting to see which way we break.
