When Things Get Feisty, Look at the Bigger Picture

Two Weeks of Deuce Begs for a Breakout

SPY 3 Month, Daily - 11.26.10 - Rectangle demonstrates a range between 118 and 120 on the SPY.  On Balance Volume confirms.  Price Action is between the 20 & 50 Day Moving Averages.  This is the Devil's Den that we try to avoid.  Trading in the Den can be hazardous as the market direction is undetermined.  It is a battleground between the Bulls and Bears.  When a fight breaks out in a bar, the best thing to do is leave.  The longer term trend is up so the trade to look for would be a breakout above 120.  (This is not a prediction.  The market could go the other way as well.)   My personal plan is to wait and watch for a breakout.  I'm watching the fight from the sidewalk.