Today's trading session finished with light holiday trading volume while the major indexes were little changed. However, SPX ended the day as a doji and the potential turn date 12/28 is approaching as a confluence of trendline intersections is clustered over the next few days. Today is also the last day of CTP cycle high window of 12/24 +/- 1 day. He's expecting a cycle low going into 1/2/12 +/- 1 day.
So far, evidence points to overbought conditons by all slow stochastics and SPX is apparently running into multi-year trendline resistance at 1268. These green trendlines have been respected by SPX at various times since late 2008 and may provide valuable clue to the future direction. The market looks like it may pull back over the next few days. Price and volume action will be crucial over the next few days to determine direction of the market.
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