Bulls did consolidate their position today after another rally on a pretty good volume (above 50 days moving average). SPX is just 5 points bellow November 5th high. If SPX manages to make a higher high it is very likely that is going to go further up. Daily DMI has turned extremely bullish.
I have second thoughts about my decision to stick with my shorts. This is for the first time in years when I am betting against the market. It's true if market is going to give more false buy and sell signals the whip-saws are going to be painful if I go with my EMAs crossing but it's even more painful to see market going up and being caught on the short side with daily DMI on green and a powerful EMAs crossing on 60 minutes chart.
A higher high above 1226 is a must for the sake of the long term rally. Otherwise we are going to see a triple top around this level, the third top being the April's high. This is pretty much the last hope for stubborn bears (like me in this case), that market will find resistance at November 5th high. Hoping that market will turn in your favor after making the wrong bet is a losing strategy. I've got caught in this and most likely I am going to pay the price. Market's God wants me to give back some of the gains :) Otherwise, this year was absolutely perfect for me! Emotions are always our worst enemy, that's why is better to find your timing indicators and apply them mechanically. Statistically, you will be on the winning side most of the time. If you let your guts feelings to decide for you you are prone to mistakes like this one I just made.
All the best!
P.S. Many thanks to those of you who clicked on my ads today