12.07.2011 -- Rejected again..

Not a lot to add today. We again took out the 200dma and then proceeded to close below it. We also pinged the trendline that could be forming a large wedge instead of a channel.

Rather than burning off some overbought, we just seem to be getting more overbought on the daily during these last few days of gyrating.

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Key Levels

Upside -- 1263, 1266, 1301ish

Downside -- 1257, 1244, 1223, 1212, 1183, 1170, 1121

(Getting very lopsided now)

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SPX Daily;

Not a whole lot of change from yesterday. We rejected resistance again.

The market is running low on time here on getting over the 200dma. What happens here soon may clue us into whether this is a big wedge or a corrective channel as we are rejecting the 200 and the top of the wedge right now.

We were falling today back into the bollingers and the market managed to stage the rally and close just back on top of them.

We are wedged here into a very tiny space of resistance and support.

I think the resistance is stronger than the support and we are overbought.

GL

CJ