1100 Before 1080?!

The S&P may see one more test of 1100 before a ride down to 1080 and a bump up against the 50 day moving average. Today's action saw prices bounce, once again, off the lower end of the recent consolidation. As has often been the case lately, volume declined on today's positive move as compared to the volume on yesterday's decline. As you'll see in the chart below, we have lower highs and lower lows on the 30 day, 30 minute chart and the 5 day moving average has now turned lower and sits ready to act as resistance at 1100 (provided we don't see a gap above it as has been the case twice during this consolidation)...

I want to point out that the $CPC moved higher today despite today's strength. At .96, this means traders were buying nearly as many puts as calls despite the market's strength. Make of it what you will, but it once again strikes me as a bit odd. We just saw a similar move in the opposite direction that I pointed out in this post. The following day (12/4) the market pushed to new highs and attempted a breakout, only to reverse hard in the same session. Just a little food for thought going into tomorrow...

Looking at the /ES channel, prices worked their way down to the 25% line before finding support today. Note there's a little room to the upside to once again test the 50% line from the underside tomorrow. This would play out well with the retest of 1100 I described above...

Just in case the market decides to throw me a curveball and blast above 1100, I want to have a few long candidates to potentially neutralize the portfolio. I like the way RKT is trading and I'm considering buying the ugly dip in GMCR, but these couple of breakout retest candidates would likely be my first choices...

EPAY

RAX

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