01.23.2012 -- MACD approaching decade highs..

There's not much room left for this rally. The MACD on the daily is at 19. 24 is the decade high and we touched 24 back in October just before that very sharp sell off started.

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Key Levels

Upside -- 1320-1330

Downside -- 1310, 1299, 1287, 1257, 1249, 1224

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SPX Daily (12 month)

Not a whole lot to say here, we are in the same position we have been.

MACD approaching that key 24 level, Stochs are very overbought and hanging up there.

Its still an open question of whether we will sell off some and then have yet one more surge to end this rally. There's really no way to tell yet. If we are going to end it now, I'd like to see some kind of blow off and mega reversal here. Either that or a bad earnings report or something from a key cog like Apple tomorrow that sends everything reeling in a big gap down open.

Either way, this rally doesn't make it past mid-March and could be over now with the 1321 top.

GL

CJ