Todd Harrison: The Stock Market Road Map

By Todd Harrison  DEC 12, 2013 10:52 AM

Stair-step levels that will pave our forward path.

 



Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter.


Thirsty Thursday is upon us -- yes please! -- as we edge toward the fish-or-cut-bait level that is S&P (INDEXSP:.INX) 1775.

It's been a long time since the bulls had their backs against the wall, but after 13 straight months of being rewarded for buying the dips, they're not too worried (which may be a reason to worry).

Should S&P 1775 hold, shame on the bears yet again, as the bulls will again set their sights on S&P 1800 or higher; should that level give way, the trend line from November 2012, in and around S&P 1730-1740, will come into play. See both levels on the chart below.

Market internals are currently 2:1 negative on the big board, the banks -- which dragged the tape lower yesterday -- are now outperforming (they've been a super tell), and high-beta tech is a mixed bag, buoyed by the price action in Facebook (NASDAQ:FB) following last night’s news that it will be added to the S&P (as index funds buy the stock).



Random Thoughts:
R.P.

Disclosure: Minyanville has a business relationship with TD Ameritrade.

Twitter: @todd_harrison

Position in SPY.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

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