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Wednesday, December 11, 2013

12/10/13

Today managed a minor pull back amongst the most recent upward thrust. I do believe this is minor and upward continuation tomorrow is highly probable.

The charts are definitely showing very strong support in the 1800 - 1802 range. This likely helped keep those with long positions from fretting too much. The four hour and hourly charts formed some classic bull flags and look poised to push upward within their channels.

On the daily chart, the shorter, yellow channel is offering tomorrow's support where we saw it today – 1800 - 1802. You can also see that the 5 and 20 Day MA's and 23.6% fib retracement are bunching up near this level.  For some reason I can't help but see this as a base for strong gains tomorrow, similar to Monday. Upside resistance tomorrow is 1820. I think 1820's are a definite this week. Tomorrow if we are lucky.

I think a reversal formation is pretty unlikely at this point, but it's still on my radar.

S&P 500 Daily Chart



S&P 500 4 Hour Chart



S&P 500 Hourly Chart




By the way, Netflix (NFLX) looks ready to gain


Netflix Daily Chart


Netflix Hourly Chart


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