Favorable signs. At last signs of Santa Claus?

Posted on Dec 23, 2011 by in Uncategorized

The Dow is taking out the recent high — at the lower horizontal line, and apparently will take out the next high as soon as it hears sleigh bells.  Perhaps more importantly it looks like this formation here from early November is a reverse head and shoulders (Kilroy) and a definitive break above the neckline should propel the market into the new year.

In the SPX similarly bullish signs are emerging:

The bearish trendline from November is being broken, and the SPX also appears to have a reverse head and shoulders — in this case a continuation pattern.

We added to our SPX positions in several family accounts today.  So much for traders who hate to go into the weekend with a position.

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