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We’re up at that spot again. The last time we were here was back on 9/14/12. The last time we hit this level, it started a 130 point S&P move lower. That 130 point move just took a month.
Hard to say if we are at a double top zone here (you never know until after the fact), but it is definitely time to tighten your stops and maybe raise some cash. If we do break through that 1474 September level, we should see some strong “round number” resistance at 1500.
So, in my opinion, we maybe have another 25 S&P handles higher, before we may see the start of some profit taking.
Of course the market could surprise everyone and just rip to 1525. Bottom line, the market gets harder to trust here, so be careful. I don’t expect a major correction, maybe 50-60 S&P points. It will happen, its just a matter of when.
I have tightened up most of the stops tonight, so if you are long any of the names, please take a look at the P&L.
Sorry for the hiccup on the chatroom today, the eagle has landed and all systems are now a go.
See you tomorrow.
Joe