11.13.2011 -- Quick sunday update..

It's looking more and more like this is a wave B and we are in a small triangle/flag with another sharp rally coming into year end.

But I will say... its so obvious at this point, that it gives me pause. I generally don't like when the market is only giving you one option, cause that option often ends up being wrong.

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Key Levels

Upside -- 1269, 1290, 1308

Downside -- 1249, 1227, 1200

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SPX Daily;

We're going to focus on this triangle/flag that I previously had in red. It seems overly obvious that we are going to bounce up and down in this flag until the end of the month and then probably seasonally rally pretty hard for wave C up all the way through December.

It's staring everyone in the face. I don't like situations like that. When it seems very obvious like this, you have to pause a little.

But, I will say, this is all lining up timing/sesonally/pattern wise right into a perfect pattern.

Outside of a complete plunge out of nowhere on Monday or Tuesday,.. and it would have to be a hell of a plunge.. I'm talking near 100 points on the S&P... I would expect us to bounce around in that triangle for another 2 weeks and then rally hard for a month and then look towards some kind of complete collapse coming after the new year, probably in the 2nd half of January.

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side note... watch gas prices.. I think we are shooting towards 5$ a gallon by Spring.

GL

CJ