I mentioned the range of the SPY in my September's posting. Once it broke out of the lower range one could see the price movement to the top of the upper range. There has been an attempt to break above the $120 resistance level. While December is typically a bullish month - Bulls beware.
The momentum in the market is waning, and as the dollar is on the rise (see UUP) we may very well see the SPY move horizontal to bearish going forward. With all this being said, the short-term charts are indicating indecision between $118 and $120, and at the same time the long-term chart is illustrating that support is holding for now. Watch for some activity in the market once the big players come back from the Thanksgiving break. The last week of November may be a telling week and show us which direction the SPY will head towards the end of the year.
Traders - Trade what you see, not what you think! In other words, wait for confirmed break outs either up or down to make decisions.
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