$SPY gaping higher, above the 1st target for the day of 142.71. Keep in mind that since we are gaping higher like that, it immediately put us in the overbought territory according to the $NYMO (McClellan Oscillator). On the Fibonacci Retracement level, we are just a few cents from the 143.18 point where I am convinced that we will hit a short term top, and start to sell off until the 140 level.

I suggest all my readers who went long on Friday 11/16/2012 to trim 60% of your current gains, and significantly raise stops on the other 40%. As of right now, and if we indeed start to sell off once we reach that 143.18 (give or take) level, I will consider this a buy on the dips kind of market.

Also keep in mind that I am still very bullish on the market overall and do believe we will continue to run until Jan 11 which completes that 45 day cycle that I talked about from November 16.

$SPY 1st support is 142.35, 2nd support 141.71, and 3rd is 141.21.

$SPY 1st target is 143.55, 2nd is 144.10 3rd is 144.60, and 4th one just for fun is 145.19.

Trade what you see not what you think.

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