OK, so despite all the sense, we are facing another leg up right now. This should definitely get us to over 1100 in SPX. A pretty dangerous zone, if I might add. As I have written in the previous post, current market condition start to look like in 2007, and we all know how that ended.
Still, as a trader, you have to play both sides. The price action for the next month favors bulls, meaning you should be a buyer for now. Some people say, that it is October, the odds are, that the market will selloff pretty hard. But, remember – the whole year of 2009 is against the odds.
The charts are pretty bulllish, right now we are facing a breakout from widening wedge – a bullish pattern. My suggetion is to wait for a pullback and but at 1040-1045 area, with a 10 pts. stop and a target of 1100. Atretty good 1/5 Risk/Reward play.
P.S. I think that the top might be 1111. Its like the bottom in April was at 666. This big guys have some sence of humor.
