Obviously we are getting close to Xmas, and nothing has changed. It is important to realize that nothing goes up in a straight line, which is key.
I know there are hundreds of newsletters and other blog saying we really crash and crumble from here, and even go below the 1340 level, but sentiment is saying while that could happen, its a very low probability right now!!!! Time will tell.
Below is the chart of the S&P and what we think may happen leading into xmas. There are no guarantees but studying the market sentiment favors a little dip on the S&P first, and then we resume the extensive rally we have been seeing over the last several weeks.
|downside to boot|
Maybe it is time for the market to take a little rest. Even if we do see that, my guess is that it is just going to set up for more up in to early 2013, especially with the breadth charts the way they are. We feel there is more pain coming for the bears, but as said the market may want to take a little rest first.
It is possible we get some down here, after a big run up, but I have 7 words for you. DON'T FALL IN LOVE WITH THE DOWNSIDE!
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