The fiscal cliff drama continued until the last minute today. As expected market was very nervous this week. Yesterday was a particularly bad day for bulls with EMAs giving a "sell" signal and making lower lows on both daily and weekly charts.
The reason I din't wrote yesterday is because I expected a surprise today and indeed Democrats and Republicans finally made a deal. As far as I understand the battle is not over despite today's last minute agreement, and if the fiscal limit is not raised by late February or early March, the U.S. would default on its debt!!!
Both daily and weekly charts showed lower lows yesterday but today's action pretty much cancelled yesterday bearishness. SPX slipped bellow SMA 50 yesterday but recovered the lost ground today.
I wish you a great trading year!
Happy New Year!