09.15.2011 -- Broke some resistance

We broke some resistance today at the top of the bollinger bands. There's a bit of an air pocket here.

We may burn off some short term overbought levels tomorrow and bounce off the bollingers to go higher, or we may just continue straight higher without pause.

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Key Levels

Upside -- 1230, 1251, 1274

Downside -- 1199, 1181, 1163, 1158, 1121, 1102

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SPX Daily;

We broke out of the top of the bollinger bands today. We closed at the high and in an area that really doesn't have much resistance all the way up to the 50dma at 1230.

We are very short term overbought though. So it's possible we take a breather day or maybe sell off a bit and head back down to bounce off the bollingers from the top.

There's some more buying to be done here.

We are completing this pattern though. We should finish somewhere in the 1250-1283 range. A pop over the 200dma might be the goal here right around end of quarter, which is Friday the 30th. 11 more trading days to EOQ.

The transports were really moving but slowed down today, so did the momo stocks. The banks though had a real big up day. Seems money is rotating through the sectors for this rally.

Once this pattern is finished, we will have another big sell off. There are again 2 possible EW counts. Once count would have us falling from the 1250-1300 zone down to 1020-1040. The other would be much more dramatic and have us falling from 1250-1300 down to the mid 800's. We should be able to deduce which one as its happening.

Gl

CJ