SPX Read going forward – November 28, 2010

We got our 5% pullback to almost the 50MA last week. We have 1206 and 1235 overhead as resistance. The dollar is ripping and has stopped just short of the resistance of 80.48, Next target is 81.26-81.70. But does it really matter? We have seen it start to decouple already. Looking to see 1206 busted next week. Don’t see a big pullback, but we can slip back to 1175 easy. We are in a 20/50 “Pincher” set-up here. The next move will be big, up/down, I am leaning north. Still see 1250 during the upcoming Ho-Ho rally. The downside plan is simple, If we lose the recent low of 1173 and the 50MA @ 1176, we are buyers from 1173 to 1161 support, and we wait. If we lose 1150 then we bail, and wait for the next support.Stick with the best stocks from here on out till year end. Don’t forget to take profits, you don’t see a hungry rat in a cheese shop do you?

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