The S&P December futures have gone into buystalk mode today, and thus take on a bullish “trending” sentiment,
and implies that the 1102.25 high of this move in the Dec. will get taken out. Above there the main focus will
become that 200 day MA which cuts across our path up at 1110.25. If the futures back off at all, maybe due to
the “claims” number out this morning, then look for the main support area to be 1092-1094. That support block
should be tough to crack, and tough to maintain below there if they do crack it.
Longer Term Outlook: Looking ahead longer term, the S&P has been overlapping itself for the last 4 months,
basically from 1050 to 1120, and it is beginning to appear that we are preparing to exit out the top of that range.
Above the 200 day will be our signal, and 1022.50 to 1024.50 in this Dec. contract will be our upside breakout. I
believe we have weathered the storm for now, and although “loans”, the main problem coupled with uncertainty,
still exist, the larger picture, the larger economic cycle, though it has been “stunted”, is beginning to push forward
now.

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