Intra-day, the market found resistance at the 1230 level near the weekly SMAs, as highlighted in the 'stability?' post.
added certainty that the EFSF will be amended. (An amended EFSF is a major pillar to the restructuring of Europe's financial cracks.)
With all the actions taken to seal up the Europe's financial cracks, at least for the mid-term, the market maybe able to consolidate here, without crazy market volatility. The leaders (via IBM and AAPL) seem to have started their bit of consolidation. I would like to see the market trade between 1200-1230, while consolidating.
Preferably I would really like to see the SP500 stay above 1215 because if it can stay near 1215-1220, a shit load of doubt will seep into all the negative-Nancies out there. For instance, this bullshit assessment coming out of SocGen making a claim regarding US GDP with respect to corporate profits. This type of assessment may have worked before 2002, but with the majority of SP500 companies are linked to GLOBAL GDP, the SocGen assessment is totally wrong. (With SocGen producing these kind of assessments I am not surprised they are on the verge of bringing down France and Europe. How so-called professionals are able to get away with blatant ignorance is beyond me.)
As I have highlighted on this blog time-and-time again, SP500 is linked to global performance.
If we can consolidate, with some reduced volatility near 1215-1220, the long-term trend of the 320-360SMA will be re-established, and the market will push higher. (Hopefully the EU doesn't fuck shit up, again.)
(PS: To my mother-in-law, may you rest in peace.)